OEF REVIEW:The jump in imports, if realised, could see China overtaking the United States as the world’s largest crude importer after China’s average crude imports hit a record 6.71 million barrels per day in 2015, up 8.8 percent from a year ago. China is expected to import 860,000 barrels per day more crude this year, Yao Li, chief executive of SIA Energy said at a Platts conference.
OEF REVIEW:China’s oil demand will grow 4.3% this year to surpass 11 million barrels per day, compared to 4.8% growth last year, the country’s top energy group forecast on Tuesday. State-owned China National Petroleum Corporation (CNPC) sees the country’s oil demand rising to 566 million tonnes, or 11.32 million barrels per day in 2016, some 460,000 barrels per day higher than last year.
OEF REVIEW:Though Syria itself is mostly irrelevant as a trading partner for China, the region’s stability is nevertheless one of Beijing’s core concerns, not only because Iraq is among its main oil suppliers. Beijing’s $900 billion Silk Road initiative aims to connect Asia, the Middle East, Africa and Europe through a wide-ranging infrastructure network. But ongoing fighting and terror attacks are putting this mega-project at risk.
OEF REVIEW:Given the current circumstances, the impact of China on global markets should not be underestimated. As the world’s largest oil importer, China is one of the countries that benefits the most from low oil prices. The decline in oil prices is generally good for China. But wild swings in oil prices, and a possible price rise in the future, could have a big negative impact on the country’s economy. One of the strategies to offset the impact of wild fluctuations in oil prices is to increase the country’s oil reserves.
OEF REVIEW:With the Shanghai Stock Exchange Composite Index down more than 40% since last June, investors worldwide are watching the decline with growing concern – but not because they are invested in the plummeting market (China’s stocks are overwhelmingly held by Chinese). Rather, the fear is that plunging equity prices mean that China’s economy is going down the tubes. But those seeking compelling clues about China’s economic future should look elsewhere.
OEF REVIEW:The Company’s net production target for 2016 is in the range of 470-485 million barrels of oil equivalent (BOE), of which approximately 66% and 34% are produced in China and overseas respectively. The net production targets set for 2017 and 2018 are around 484 and 502 million BOE respectively. The estimated net production for 2015 was approximately 495 million BOE.
OEF REVIEW:Oil prices crashed 6 percent on Friday to close below $30 a barrel for the first time in 12 years, resuming this year’s breathtaking rout as Chinese stock markets fell further and traders braced for an imminent rise in Iran’s exports.
OEF REVIEW:In a move to improve its energy security and take advantage of cheap oil, China is spending billions of dollars to build up strategic petroleum reserves (SPR) to meet up to 90 day’s worth of net import demand in case of a disruption. The country is building underground caverns capable of holding up to a quarter of its expanded strategic oil reserves by 2020, as it looks for new storage methods away from expensive and exposed above-ground tanks in crowded coastal regions.
OEF REVIEW: China’s president Xi Jinping has made major pledges in foreign aid, and Africa will foreseeably benefit greatly from the new packages. Even though developing countries and the development community have welcomed the aid pledges there has been harsh criticism of them from within Chinese society.
OEF REVIEW:“Moody’s defines China’s rebalancing challenge as the need to engineer economic restructuring, policy reform, market liberalization and slower credit uptake with the aim of shifting economic growth drivers away state-led investment – all without sacrificing short-term macroeconomic stability.” “As the authorities are — we believe — prioritizing stability in the current environment, the likelihood of a slowdown in policy reform is increasing,” says Rahul Ghosh, a Moody’s Vice President and Senior Research Analyst.
OEF REVIEW: According to the Global Times, China, the Trans Pacific Partnership (TPP) trade agreement will not isolate China or seriously hurt the Chinese economy. Some Chinese experts explain in this article that it could be beneficial for the growth and development of the country.
China imported 6.26 million barrels a day of crude in August – up 5.6% from the same month last year, but a 13.4$ drop from July this year. Almost half this growth has either gone into storage or been exported as fuels, it appears. Gasoline demand rose 17% over the first seven months of this year compared to the same period last year, but diesel consumption is weak.
How much is the economy slowing down? Why have markets reacted so much to the devaluation and to the shift to rely more on markets to set currency value? What happens next to the currency? What´s happening to the pace of economic reform?
