Energy

Oil use in China may rise 9% in second half

(Agencies)
Updated: 2010-07-02 14:20

China, the world's second-biggest energy consumer, may post a 9 percent gain in monthly oil demand in the second-half of 2010 from a year earlier as its reliance on oil imports grow, China Oil, Gas & Petrochemicals said.

Monthly oil demand may reach 35.5 million metric tons, China OGP, a newsletter published by Xinhua News Agency, said in its latest issue without citing anyone. Monthly oil output may rise 4.6 percent in the six-month period, lagging behind the expansion in consumption, it said.

Related readings:  Oil dives 4% on weak economic data in China, US  Sinopec to reduce July oil processing rates in Guangzhou  Oil falls amid demand concerns  Sinopec to increase oil processing at Maoming refinery

China, the world's fastest-growing major economy, bought from abroad more than half its crude needs in 2009 to feed its expanding industries. The country may rely on oil imports to satisfy 58 percent of requirements by 2015, China OGP said.

A surge in refinery output because of capacity expansions will likely outpace China's demand growth, causing the country to remain a net exporter of gasoline and diesel for at least two to three years, according to the newsletter.

China may add about 30 million tons of oil-refining capacity this year, a 10 percent growth over a year earlier, China OGP said. That exceeds the average 4 percent growth in fuel demand seen in recent years, the report said.