China expects 6% rise in oil imports
(Bloomberg)
Updated: 2005-11-14 09:41

China's oil imports may rise 6 percent this year despite high international prices that discourage refiners from buying overseas, according to a Chinese official.

China's oil imports surged 35 percent last year, to 122.7 million tons, partly because the government clamped down on the smuggling of oil products. The crackdown raised the need for locally refined oil products, which in turn increased the need for crude oil for processing.

China may import about 130 million metric tons of crude oil this year, the Chinese official, Xu Dingming, said at an economic conference here on Saturday. The oil import bill has exceeded $30 billion so far this year, said Xu, director of the energy bureau at the National Development and Reform Commission.

"We still need oil imports to sustain growth," Xu said. "In the environment of high international oil prices, our import bill is also soaring."

China led global growth in oil demand the past three years, helping to more than triple prices since November 2001. Oil touched $70.85 a barrel in New York Mercantile Exchange trading on Aug. 30 but has since slipped, closing on Friday at $57.53. China is trying to establish an energy-saving society to slow growth in demand for oil, Xu said.

The International Energy Agency has been trimming expectations for Chinese growth in oil demand this year as higher prices have curbed imports. Imports were up 4.8 percent in September after declining 6.1 percent in August.

The agency said on Oct. 11 that it expected China's demand to increase 3.2 percent, to 6.64 million barrels a day. That was revised downward from a 3.4 percent rise estimated on Sept. 9.