China's oil demand increase 'astonishing', says IEA (BBC)

[eppur_se_muova]

China's demand for oil jumped by an "astonishing" 28% in January compared with the same month a year earlier, the International Energy Agency (IEA) says.

The body added that demand for oil in 2010 would be underpinned by rising demand from emerging markets, with half of all growth coming from Asia.

But the IEA predicted demand in developed countries would fall by 0.3%.

The IEA has increased its global oil demand forecast for 2010 by 1.8% to 86.6 million barrels a day.

Oil prices are currently at their highest point for two months, with US light, sweet crude above $82 a barrel and Brent crude more than $80 a barrel.
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more: http://news.bbc.co.uk/2/hi/business/8563985.stm




Thank goodness the Invisible Hand of the Free Market will sort out this minor problem. :eyes:

[mediaman007]

1. Rhetorical: Will U.S. oil companies sell to China if Chinese consumers will pay more

than United States consumers? Oil companies will short change the United States faster than green grass through a goose.

[Statistical]

2. That shows a misunderstanding of how oil markets work.

Oil companies (all oil companies all over the world) will sell to anyone at current price of oil.

Americans will pay $81.76 a barrel, Chinese will pay $81.76 a barrel, Aliens will pay $81.76 a barrel.

The problem is as Chinese demand rises and supplies don't (which eventually they won't because we will hit peak oil) prices WILL rise. They will rise until demand is reduced enough to reach equilibrium with supply.

will that be $100 a barrel? $150 a barrel?, $200 a barrel?, $500 a barrel?

Who knows. A lot depends on how fast Chinese economy keeps rising and how much its citizens can absorb higher oil prices.

However oil prices will rise and continue to rise and keep rising and rising and rising.

In a decade you will look back with fondness at $3.00 a gallon gasoline (because likely it will be $5.50 a gallon).

People who want to pretend peak oil doesn't exist or we can go back to cheap oil if we get rid of speculators are just selling themselves up for a horrible financial fall. Countries that accept peak oil and quickly transition off of oil will win. Those who don't will be crushed.

[hatrack]

3. Why in the world would they announce that they were "astonished"?

What do they think has been happening in China for the past 30 years?

What do they think the goal of the Chinese government is? Hint: it rhymes with "both".

Sheesh.

[Statistical]

4. A 28% rise in a a year on an economy as big as China IS astonishing.

Nobody is astonished China is growing. Nobody is even astonished China is growing rapidly.

A 28% annual increase IS astonishing.

28% year over year. In one year China oil demand growth is equal to our oil demand growth for a decade.

A couple more years like that and China will accelerate Peak Oil by years if not decades.