China’s Crude Imports Hit Record High, No Letup

SINGAPORE -(Dow Jones)- China has smashed its full-year crude oil import
record and is on track to breach the 100-million-metric-ton mark this year,
official data showed Monday.
UPDATE: China’s Crude Imports Hit Record High, No Letup

SINGAPORE -(Dow Jones)- China has smashed its full-year crude oil import

record and is on track to breach the 100-million-metric-ton mark this year,

official data showed Monday.

The country imported 9.275 million tons of crude in October, a 34% jump

from the same month in 2003, according to the General Administration of

Customs.

This brings imports for the first 10 months of the year to 99.589 million

tons, or around 2.4 million barrels a day, topping the 91.124 million tons

imported for the whole of last year.

Robust demand in China, by far Asia’s largest oil consumer, has been a

leading factor behind high global oil prices for the better part of this year.

Angola heads a long list of crude suppliers to the country in October,

selling 1.593 million tons in the month, reflecting the growing popularity in

Asia of supply from West Africa, which is of high quality with a low sulfur

content.

But for the 10-month period, Middle East heavyweight Saudi Arabia remained

China’s leading supplier, shipping more than 13.363 million tons, the data

showed.

Industry sources say an import slowdown is likely for November and

December, given that Chinese state-owned importers are looking to minimize

inventories toward the end of their financial year.

But with domestic demand still being driven primarily by a need to

generate more electricity in the face of repeated brownouts, imports should

stay high next year.

The customs data also showed China’s crude exports falling in October, for

the third time in four months.

Exports totaled 311,366 tons last month, a 27% tumble from the same month

last year. This brought the January-October total to 4.613 million tons, or

around 111,200 b/d.

China earlier this month slashed its crude export quota 2005 to 1

million tons – a third of its allocation for this year. Foreign companies

aren’t subject to the quota.

The Chinese government is clamping down on oil exports in response to

slowing production growth at home, with major oil fields such as Daqing in a

state of natural decline.

-By Yee Kai Pin, Dow Jones Newswires; 65-6415-4062;

kai-pin.yee@dowjones.com

-Edited by George B. Thomas

(END) Dow Jones Newswires

11-21-04 2236ET- – 10 36 PM EST 11-21-04

11/21 9:36p CST