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Imports of crude oil expected to slow down
By Wang Ying (China Daily)
Updated: 2005-08-04 05:54

China's crude oil imports will slow down this year, according to forecasts from the Ministry of Commerce (MOC) released yesterday.

An oil tanker unloads imported crude oil at the Suanshan port in Zhejiang Province, February 2, 2005. [newsphoto/file]
The ministry figures estimate the country will need to import 130 million metric tons of crude oil this year, a year-on-year increase of just 6.5 per cent over 2004.

In contrast, last year's imports of 122 million tons of crude oil represented a year-on-year rise of 34.68 per cent over 2003.

China is the world's second largest energy consumer after the United States, with its imports this year estimated to account for 6.8 per cent of the world's total crude oil trade volume, the ministry said in a statement.

"Because of soaring oil prices on the world market, demand for refined oil (such as gasoline and diesel) has decreased, so crude imports are expected to continue to slow down in the second half of the year," it said.

China imported 63.42 million tons of crude oil in the first six months of the year, a year-on-year growth of 3.9 per cent.

Industry analysts attributed the lower import growth to skyrocketing oil prices on the world market, and the slow growth in oil refining capacity as well as increased stockpiles from last year.

Gong Jinshuan, a senior analyst with the country's largest oil producer China National Petroleum Corp (CNPC), said surging crude prices have squeezed the country's demand, although a recent 2.1 per cent renminbi appreciation has indicated a stronger purchasing ability for China's domestic consumers on the world market.
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