EIA To Trim China Oil Demand Forecast, But Remains Bullish

The federal Energy Information Administration is set to lower its 2005 estimate of Chinese oil demand in its latest Short-Term Energy Outlook, due out Tuesday, EIA analysts said Monday.

The analysts declined to provide specific figures ahead of the report’s official release, but said recent data have led them to conclude that Chinese oil demand last year grew slightly less than they had believed and that this year’s rate of growth won’t be as high as the 800,000 barrels a day currently forecast.

A downward revision would take the edge off one of the more bullish forecasts for demand by the world’s second-largest oil consumer. Strong growth in China has helped push overall world oil demand up to a level producers are stretched to cover, underpinning the long rally in oil prices.
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