A tiger's growing thirst for oil (China)

[bemildred]

BEIJING -- American consumers watching the dollars rack up as they pump gas at stations across the country usually blame the high prices on the war in Iraq. But China's galloping fuel consumption could destabilize global energy markets and security even more profoundly, energy specialists say.
ADVERTISEMENT


China, a net oil exporter until 2001, is now the world's largest oil importer after the United States. This year its booming economy will burn about 2.4 billion barrels of oil, one-third of it imported.

---

According to Merrill Lynch's analysis of China's oil buying and consuming patterns, the country is buying about 500,000 barrels of oil a day more than it needs.

Without such "hoarding" oil prices, which are currently at a record $53 a barrel, would be in the range of $30 a barrel, Rothman said. With the International Energy Agency estimating that every $1 increase in the price of oil costs the global economy $25 billion, China's moves could have far-reaching consequences.

Boston.Com