Unlike 2004, China oil demand unmoved by power woes

China’s worsening power woes are all but guaranteed to trigger a surge in imported oil, just as they did in 2004 during the worst crisis in decades, right?

Wrong, say experts and industry sources. While the theme is familiar, the circumstances couldn’t be more different, suggesting that oil bulls looking for a reason to push crude beyond $150 a barrel will need to look elsewhere.

This year, it’s coal availability and price — not a lack of generating capacity — that have curbed supplies, forcing more than a dozen provinces to ration electricity amid a deficit now totaling as much as 27 gigawatts (GW), about 4 percent of total capacity in the world’s second-biggest power user.

Reuters