With China’s economy back on surer footing, the country’s voracious appetite for energy has returned. But as the Chinese Ministry of Commerce’s (Mofcom) recent China International Oil and Gas Trade Congress in Shanghai made clear, its role in global energy markets is also evolving and becoming more intertwined with other nations. China is the world’s largest importer of crude, with import levels set to rise further in 2018. At the same time, though, crude product output is outpacing domestic demand, raising the need for the country’s refiners to expand export relationships. For President Xi Jinping, these dual trends fit hand in glove with his signature Belt and Road Initiative, which seeks to establish greater cooperation and connectivity between China and some 70 countries. China’s crude imports ran at 8.42 million barrels per day during the first 10 months of 2017, up 11.8% from a year ago and firmly above US imports of 7.95 million b/d during the period, according to Chinese and US import data. Yet the country’s apparent oil demand — that is, the amount of crude run through Chinese refineries plus net product imports — rose a good clip lower than overall crude imports during the 10-month period: Whereas crude imports were up 890,000 b/d year-on-year, apparent oil demand rose a more modest yet still robust 426,000 b/d, or 3.8%, according to PIW estimates. Next year, imports could again be well ahead of oil demand, which means oil inventories can grow further.
展开▼
