28 January 2010 15:14 [Source: ICIS news]
By Vinicy Chan
LONDON (ICIS news)--China has taken centre stage in the world’s crude oil market as demand from the US and other developed nations struggles to recover, leaving the onus to the world’s second biggest energy consumer to bring balance to oil fundamentals.
But that optimism might be exaggerated and will be challenged as ?xml:namespace>
"Oil demand in 2010 is definitely being driven by the non-OECD and by
The International Energy Agency, adviser to 28 industrialised countries, predicted Chinese oil demand would rise by 3.5% every year until 2030, and that it would overtake the
However, analysts cautioned that this optimism might be overplayed.
"In terms of growth rate,
According to OPEC,
Despite forecasters such as UBS and Barclays highlighting the importance of emerging markets in Asia to drain unseasonably-high oil inventories, a tighter monetary policy and the phasing out of stimulus measures in
"When we’re worrying that lending is going from very rapid to almost zero, it opens up the possibility of the economy going horribly wrong."
But the question now is what growth rate the emerging giant will have if it puts the brakes on - whether
Earlier this month,
The global equities markets and crude oil prices tumbled on the surprise move, which sellers feared could slow the country’s growth and restrain its buying of raw materials.
‘I won’t put it in such a negative context.
‘I believe these measures will be carried out cautiously and gradually. A bursting will do no one good,’ Sen added.
($1 = €0.71)
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