Climate Changed

Seen From Space, China's Oil Demand Looks Stronger Than Expected

  • Satellite data implies refinery use, consumption understated
  • China’s year-to-date oil inventory build at 87m bbls: Barclays
Photographer: Andrew Too Boon Tan/Moment Editorial/Getty Images
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The crude market may be underestimating China’s oil demand.

Storage data gathered by satellite implies the amount of crude China is putting into storage is below what can be extrapolated from the nation’s customs and production data, Barclays Plc analysts wrote in an Oct. 23 note. That means it may be consuming more oil than official data indicate and that the global supply-demand balance is tighter than estimated.