EIA Raises Chinese Oil Demand Outlook

Chinese oil demand will grow by 33% more than previously forecast this year, as the expected drop in demand for fuel to run power generators hasn’t materialized, the statistics arm of the U.S. Department of Energy said Tuesday.

Most forecasters have expected Chinese oil demand growth to slow significantly this year from last year’s searing pace, as new power plants are built and demand for diesel fuel to run generators falls off. But the power shortages are proving trickier to fix than expected, which will keep demand high and markets tight.

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