04 November 2009 13:29 [Source: ICIS news]
SINGAPORE (ICIS news)--A pick-up in Chinese demand has been hailed as a sign of economic recovery and is seen as a significant factor contributing to the recent rise in crude prices, but speakers at an industry conference on Wednesday questioned its impact on the global oil market.
Speakers were at the 25th annual Asia-Pacific Petroleum Conference (APPEC 2009) in ?xml:namespace>
Part of the increase in the International Energy Agency’s (IEA) demand growth projections for
The IEA raised its demand growth projections for
Chinese refinery runs have increased, said Freer, but a lot of the output is being exported.
In fact, he said,
Despite reports of high levels of automobile sales in
Instead, with export markets weak,
Fuel oil demand in
Small teapot refineries, which used fuel oil as a feedstock, have closed amid competition from state-owned refiners that have expanded refining capacity, he said.
There is also a greater use of coal power generation, Freer said, while there has also been less demand from the industrial sector.
According to Edward Morse, managing director of Louis Capital, the IEA’s expected rebound in
Morse said that
Strategic storage and logistics requirements have bolstered Chinese oil demand, Morse said.
However, rising Chinese distillate and gasoline exports have weakened global product balances, Morse added.
Freer said there were some positive signs from
However, Freer said, it could also be attributed to more naphtha going into gasoline production.
Other positive developments included some improvement in the
Power demand in
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