Thursday, May 22, 2008

China's Crude Oil Imports Continues to Rise

China's crude oil imports for the January to April period climbed 10% from a year earlier to 448.3 million barrels, according to data released by the General Administration of Customs Thursday. Imports for the month of April fell 4% to 106.80 million barrels, the bureau said.

I am assuming the April number is compared to March. In anyway I have had a theory that I touched on in my annual letter that marginal demand was being created by China for resources (metals, oil etc.) leading up the Olympics. Besides the infrastructure build China has been stockpiling oil in preparation for the Olympics to make sure there is no embarrassing shortage. My guess is this was probably amplified after the earthquakes as the military responded in force with rescue efforts. Just theorizing but it is possible you could see oil crunch right before to after the Olympics if that marginal demand suddenly disappears. Once again just theorizing.

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