Demand for crude oil likely to rise

05 Feb '07

2 min read

With crude oil supplies boosted by better fuel specifications and stronger regional economies, Asia will witness steady growth in light oil products during 2007. Oil prices started the year with a bang.

Greater supply from West Africa will help Asian refineries to cope with increasing demand for petrochemicals and transport fuels. Local markets are expected to receive less than 1,00,000 barrels of Asia-Pacific crude oil on daily basis.

With industries procuring fuel at higher rates now, downstream profit is supposed to be enhanced by heavy demand for oil products.

China, top oil purchaser of the continent, has decided to raise crude imports from Saudi Arabia by nine percent this year, while cutting down imports from Iran. Chinese imports from Venezuela and Kazakhstan have also gone up.

Indonesia is concentrating on oil exports, hence it will not import much. Crude purchase by India could remain steady, with new refineries planned in future.

South Korea is trying to secure huge quantity of crude supply from Korean owned fields. Japan is working to achieve more nuclear power and improved efficiency, so its imports are not surging.

There has been 3.5 percent upswing in demand for Asian diesel. Export of feedstock naphtha could rise owing to upcoming petrochemical plants in North Asia.

More Textiles News - Asia...