China's Oil Thirst Is Changing Global Flows - Forbes

[hatrack]

SINGAPORE, May 12 (Reuters) - "China's mighty thirst for oil, and healthy demand growth in Asia, is pushing up the price of spot barrels and changing traditional flows of crude and refined products across the globe, analysts say.

Middle East refiners are sending increasingly more oil products eastwards at the expense of supplying the West. Crude from South America, West Africa and Russia are regularly flowing to Asia in bigger volumes than before.

"China has become the arbiter of the marginal barrel of crude and gas oil, although they are not the biggest importer, it now sets prices," said Al Troner, director of Asia Pacific Energy Consulting based near Seattle. "No matter how you cut it, China will be a major influence on global oil flows even if its oil demand grows by half of what forecasters are predicting," said Troner.

China overtook Japan last year to become the second biggest consumer after the United States, soaking up about 5.49 million barrels a day (bpd) of the world market of 78.66 million bpd. This year, the International Energy Agency (IEA) expects China's consumption to jump almost 14 percent, or 750,000 bpd, to 6.24 million bpd. Some predict growth could be as high as one million bpd in 2004 and for the next two to three years."

EDIT

http://www.evworld.com/view.cfm?section=communique&newsid=5674

[Renew Deal]

1. Peak Oil

www.lifeaftertheoilcrash.net

[the_real_38]

2. This is going to make Peak Oil the "double whammy"

Demand is outpacing supply as it is.