China's oil imports surge to record high in September

China's monthly oil imports hit a record high in September, with a daily average of 448,700 tons, according to the latest customs statistics.

A total of 13.46 million tons of crude oil was imported last month, up 24 percent on last year, breaking the previous record set in January of this year by 2.4 percent.

"Price drops in the global market have undoubtedly caused imports to rise," said Yang Fuqiang, Vice President and chief representative of the Energy Foundation of United States.

Yang predicted that the price would drop from the July peak of 77 U.S. dollars per barrel to 45 U.S. dollars per barrel or lower before the end of the year.

The price cuts were mainly triggered by the production plan of the Organization of Petroleum Exporting Countries, the latest developments in the Iran Nuclear issue and the fading summer consumption peak in the United States.

Another factor contributing to the record imports is China's huge domestic consumption demand. A latest monthly report from the International Energy Agency projected an annual growth of 6.4 percent for China's oil imports this year, more than twice as much as the 2005 level.

Since China's first strategic oil reserve was put into operation in Zhenhai, east China's Zhejiang Province, market speculation for a surge in oil imports has been rife.

But Yang said that strategic reserve would not have a marked effect on China's oil imports. The biggest influence will come as ever from heavyweight purchasers such as Sinopec and PetroChina, he said.

The Chinese government has become increasingly concerned with the surging domestic oil demand and is seeking to restrain domestic consumption through the development of alternative energy such as bio-diesel and ethanol fuel.

Earlier this year, export tax rebates for energy-consuming commodities were removed, which, experts say, may also curb the consumption demand for crude and refinery oil products.

Source: Xinhua