After about ten years of changing energy flows from the US as the world’s biggest importer towards China taking the lead, April was the month China it finally happened.
According to Chinese customs data the Asian giant reached an historic high of overseas oil purchases of $7.4 million barrels a day. US imports in April were $7.2 million/day. China’s level of consumption represents about 1 in every 13 barrels of oil used globally.
It is noted that China will not consistently out-purchase the US until later in the year, but this milestone underlines how much the US shale oil revolution has truly reduced the country’s dependence on foreign oil supplies. Plus the change points to the fact that China continues to increase its demand for oil while simultaneously experiencing a slowing down in its economic expansion.
Managing partner at Blacklight Research, Colin Fenton, pointed out that part of the reason for the Chinese increase in oil purchases is stockpiling of oil.
“It’s begun,” Mr Fenton said. “China’s crude imports have been above trend in four of the past five months.”
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