Chinese Demand to Remain as Key Oil Price Influence

Surging energy demand in China will continue to wield enormous influence on world oil prices, experts said Wednesday.

Although demand in the Asian giant is expected to slow slightly from last year’s record-breaking pace, China’s worldwide search for resources to feed its insatiable appetite for energy has broad economic and geopolitical implications, speakers at a conference sponsored by the Center for Strategic and International Studies said.

After posting an annual demand growth of more than 1 million barrels a day in 2004, China is expected to use as much as 800,000 b/d more oil in 2005 and a further 400,000 to 500,000 b/d in 2006, said Caruso. The Chinese demand surge helped boost crude oil prices to record levels in 2004.