‘China oil demand to return to 16mln bpd as economy rebounds’ – Rapidan executive

‘China oil demand to return to 16mln bpd as economy rebounds’ – Rapidan executive

China's oil demand is expected to return to 16 million barrels per day as economic activity rebounds, a top official of US-based oil market consultancy Rapidan Energy Group said.

Clay Seigle, Director - Global Oil Service, said the increase in oil demand would be driven by fiscal stimulus, a pickup in transportation activity, and a robust crude oil import and refined product export programme.

"We see China clawing back to and reaching again that important 16 million barrels per day (bpd) of oil demand that it had before," he said during a virtual interview with Dubai-based Gulf Intelligence.

He said China would move past the "very difficult phase" of re-openings that have increased coronavirus outbreaks in the country, adding that the government is determined to drive economic growth this year, which will require more lifting of limitations on transportation, on mobility.

"That's the main reason we see increased oil demand and consumption of fuels from China this year. We're also expecting a strong fiscal stimulus with a package of measures from the central government that will drive fuel demand, for example, in the infrastructure sector, big construction runs on fuels like diesel."

Seigle pointed out that China is also expected to allow its independent refineries