China's Crude-Oil Demand Growth May Slow in Third Quarter as Economy Cools
China’s apparent crude demand growth may slow “noticeably” in the third quarter as the world’s fastest-growing major economy cools, said the China Petroleum & Chemical Industry Association.
The nation’s oil demand, including domestic output and net imports and excluding inventories, may rise 5.8 percent to 108 million metric tons, or 8.6 million barrels a day, the association said in its monthly report posted on its website today. That compares with the 15 percent gain in the second quarter and the 22 percent increase in the first, according to government data.
Fuel demand growth is easing as the government trims credit growth from last year’s record $1.4 trillion and discourages multiple-home purchases to curb surging property prices. The association’s forecast is lower than the 9.5 percent increase given by China National Petroleum Corp.’s research unit Aug. 3.
Apparent oil-product demand may rise 1.2 percent to 60 million tons and ethylene use may gain 4.5 percent to 3.2 million tons, the association said.
Investment in oil and gas exploration rose 10.7 percent in the first seven months and refining investment gained 5.4 percent, according to the association, which didn’t give exact investment figures.
--Winnie Zhu. Editors: Clyde Russell, John Viljoen.
To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net
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