Asian crude market pins 2006 hopes on China demand

A rise in China’s refining capacity in the second half of 2006 should give a boost to the Asian crude market which is facing a bearish year as Japan and South Korea demand holds steady and global output rises.

Crude oil traders are hoping that a rebound in Chinese imports together with moderate Indian growth will absorb extra output from the Middle East, West Africa and Russia, supporting fundamentals in a region short on crude but long on products.