Oil Demand to Be Spurred by Asia Growth, Saudi’s Al-Naimi Says

Jan. 30 (Bloomberg) – Saudi Arabia, the world’s largest oil producer, said economic expansion in China and India will spur additional demand for energy this year.

“Growth, economic growth” is driving demand, Ali al-Naimi, Saudi Arabia’s oil minister, told reporters late yesterday in Vienna, where OPEC will be meeting to decide about crude production levels. “Obviously, economic growth is continuing.” He didn’t offer specifics.

Oil demand in China, the largest consumer after the U.S., will average 7 million barrels a day in 2006, a 5.9 percent increase over last year, the International Energy Agency, an adviser to 26 consuming nations, said in its latest monthly report on Jan. 17. Al-Naimi accompanied Saudi King Abdullah last week on a trip to Asia, including visits to China and India.

Chinese demand is growing at a faster pace than last year, when it rose 2.9 percent. Demand soared 15 percent in 2004. India and China are Saudi Arabia’s third- and fourth-largest customers in Asia and the continent makes up 60 percent of the oil producer’s export market.

Bloomberg