China plans to keep 'hot money' out of realty market

China plans to keep 'hot money' out of realty market
The Economic Times, January 11, 2010, Page 18

Crude oil imports at record

China increased crude oil purchases to a record last year to meet rising demand spurred by the government’s $586 billion stimulus spending. Crude oil imports reached 203.8 million metric tonnes last year, or 4.1 million barrels a day, according to preliminary data released by the General Administration of Customs on Sunday. Net purchases reached a record 198.7 million tonnes.

Government stimulus may boost China’s 2009 economic growth by more than 8%, according to official forecasts. The world’s fastest-growing major economy may increase its refining capacity by 2.9 million barrels a day between 2008 and 2014 to meet increased fuel consumption, the Paris-based International Energy Agency said in a report on December 11.

“Oil imports have surged in 2009 also as the nation has been increasing emergency stockpiling,” Wang Aochao, head of China energy research at UOB-Kay Hian, said by telephone in Shanghai. “We expect imports to still rise more than 10% this year.”

China has finished building its emergency oil reserves under the first phase of its stockpiling plan, the National Energy Administration said in June. Late last year, the country started building stockpile bases under the second phase.

Net crude oil imports rose to 20.9 million tonnes last month, from 16.7 million tonnes in November, data showed. Imports of oil products, including gasoline and diesel, fell 5.4% to 37 million tonnes last year and reached 3.3 million tonnes in December, the customs data showed. Exports of oil products gained 46% to 25 million tonnes in 2009 and stood at 3.67 million tonnes in December.

Exports of coal, used in power generation and steelmaking, declined to 22.4 million tonnes in 2009 and stood at 2.07 million tonnes in December from 1.43 million tonnes in November. The customs agency didn’t give coal import figures.