BEIJING, 5 November 2004 — China is expected to raise crude oil imports from Saudi Arabia by 25 percent next year as the world’s No.2 oil consumer scrambles to secure oil to meet a growing domestic shortage, traders said on Wednesday.
Saudi Arabia, the world’s top crude producer and exporter, was expected to supply China with 20 million tons, or 400,000 barrels per day, of crude next year, from this year’s estimate of 320,000 bpd, they said.
Crude imports, which now account for more than 40 percent of China’s total crude needs, may grow 20 percent in 2005 from this year’s record level of 2.5 million bpd, Chinese traders have said. “China’s continued strong economic growth requires more crude oil imports,” said a trader.
Chinese state oil companies were expected to finalize the 2005 volume with state-run Saudi Aramco later this month, traders said. The extra 25 percent would be mostly Saudi Light and Saudi Medium grades, said the trader. Riyadh, which pumped 9.5 million bpd to world markets in October and was left with 1.5 million bpd spare capacity, is on a drive to meet rising global demand, a big part of which is from China.
The expected higher Saudi exports tally with a 25 jump in crude oil supply from Iran, OPEC’s second-largest exporter, to China next year to around 310,000 bpd.
