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China decelerates its oil consumption

Posted on June 11, 2015 by Grace Montealegre

Despite OPEC members declarations arguing that the oil global demand is rising whereas the production is shrinking, Chinese crude importations reported a drop of 11% in May against the same period of the last year. The oil barrel purchasing from the Asiatic giant, has been a main support for the prices recovery, so this new dynamic could change again the trend of the international market value of the commodity.

The OPEC decision of maintain the crude output over 30 million barrels per day, could suffer some pressure because of the decrease in Chinese buying. Nevertheless, few experts have already back the organization’s strategy, which despite the prices drop registered at the beginning of 2015 the quote is now stabilized around US$60.

At the same time, recent announcements about the advances in the agreement for the ending of the Iranian nuclear program, suggest that earlier than the market is expecting, this country will return with at least 500.000 new oil barrels per day, which means even more pressure over the price.

La Nota Economica - Media Partner