Energy

Oil imports to China set to slow in 2011

(Agencies)
Updated: 2010-12-22 16:29

China's appetite for oil may ease next year as the government takes steps to tackle inflation and work on expanding refineries slows, Bloomberg news reported Tuesday.

China may import 5.1 million barrels a day in 2011, up 6.3 percent from this year, according to the average of six analyst estimates in a Bloomberg survey. That compares with a 20 percent jump so far in 2010.

China's inflation accelerated to the fastest pace in 28 months in November, fueling speculation the government will raise interest rates next year. Higher borrowing costs may reduce the country's sway over global commodity markets, according to Goldman Sachs Group Inc, the report said.

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"Chinese policy makers will continue to tighten monetary supply and manage inflation risks, and that may result in a slower rate of growth in oil imports," said Victor Shum, a senior principal at energy consultant Purvin & Gertz Inc in Singapore. "Even with more modest growth, China will still be market leading global oil demand."

Meanwhile, China will still account for more than a third of world demand growth next year, the report cited the International Energy Agency.