China's rapid oil demand growth turned negative in April as Chinese refiners ran down stocks and cut petroleum product imports, the International Energy Agency (IEA) said today.
For the second successive month the IEA's oil market report cut its 2005 forecast for China's oil demand growth.
But the agency said world demand is being supported by continued strength in US and developed Asian economies, leaving its forecast for 2005 global demand growth little changed at 1.78 million barrels a day.
The IEA now sees 2005 China growth of 460,000 barrels a day, 7.1 per cent, down 10,000 bpd from last month's report and off from last year's 860,000-bpd, 15.4-per cent growth.
The reduced forecast follows a 2.8 per cent decline in apparent Chinese demand growth in April versus April 2004, when demand rose by 18.9 per cent year-on-year.
Chinese refiners cut oil product imports sharply in April, although crude imports continued to rise. "A part of the decline in product imports can be traced to the government policy of limiting increases in the price of key products such as diesel," said the IEA.
Oil prices held firm above $54 today, driven by concerns that an approaching tropical storm could disrupt oil and gas production in the US Gulf, as fears over distillates supply persisted.
US light sweet crude gained 12 cents to $54.40 a barrel, extending a 3.3 per cent jump on Thursday. Brent crude edged up 3 cents to $53.85 a barrel after surging more than $1 the previous day.