SOUTH CHINA MORNING POST - Tuesday, 15 September, 2015
In the race to supply crude to the world’s biggest energy user, it’s the tussle for second place that’s too close to call.
Russia, Angola and Iran are vying to be runner-up to Saudi Arabia as
the top seller to China. The contest is set to intensify as Iran seeks
to recover market share lost because of sanctions and the US Congress
debates a nuclear deal that will allow the Persian Gulf state to boost
shipments.
China overtook the US as the biggest importer of crude most recently
in June, taking advantage of a 50 per cent slump in benchmark prices
over the past year to boost strategic reserves. With the Asian nation
forecast to account for more than a quarter of global demand growth in
2016, the prize of becoming a top supplier will bolster the economic
health of national producers that depend on energy exports for most of
their budget revenue.
"Whether you’re number 2 or number 3, the numbers are very close,"
said Victor Shum, a vice-president at consultant IHS. "In a globally
oversupplied market, there is more competition for the growing Chinese
pie."
China is the biggest oil buyer in Asia, a region that the
International Energy Agency estimates will use 23.4 million barrels a
day in 2015, or about 25 per cent of worldwide consumption. The IEA
predicts China will consume 10.9 million barrels a day this year.
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