CHINA - New Oil Market Dominance

Arno Froese

For the first time, China imported more crude oil in the first half of the year than the U.S., government statistics showed. China averaged 8.55 million barrels per day (bpd) versus 8.12 million bpd in the U.S., a trend that is expected to last.

The shift highlights the change in the center of gravity in global oil markets from West to East. Chinese state-run oil trader Unipec is now the world’s biggest physical oil trader. By drawing more of the world’s oil to its shores, China, the second-biggest oil consumer after the U.S., will play a crucial role in setting the global price of the commodity, especially as the crude futures market in Shanghai develops.

“China is putting a lot of pressure on the traditional export hubs of Taiwan, Korea and Singapore to capture the market share within Southeast Asia and Australia,” said Joe Willis, senior research analyst, Asia refining, at energy consultancy Wood Mackenzie.

This year, PetroChina Ltd will start a 260,000 bpd refinery in Yunnan in southern China while China National Offshore Oil Corp will start up a 200,000 bpd expansion at its existing Huizhou plant in Guangdong province. The start ups will add 350,000 bpd of new Chinese capacity in 2017 though both plants will not reach full capacity until 2018.

Unipec is leading the way in targeting new overseas markets, moving jet fuel from Singapore to northwest Europe in June for the first time in several years. Meanwhile, Chinese diesel shipments in 2017 have more than doubled to France, more than quadrupled to Italy and the country shipped diesel to Kenya for the first time this year.

China’s new modern refineries are competing with the region’s exporters in producing fuels for countries with stringent fuel standards such as Australia. Diesel exports to Australia climbed seven-fold to 850,000 tons in 2016 and are on pace to nearly match that level this year., 4 August 2017

Arno's commentary

There is no stopping communist China’s industrial/commercial success. They have already become the world’s largest automobile market, and doubtless it’s only the beginning.

Many ask, what is the reason for China’s super-success? We may answer with one word: change. While the political, financial, and commercial infrastructure is guided by the communist party, there are multi-millions of Chinese who take advantage of the constant change in the direction of the world; namely, the amalgamation of communist, socialist, and capitalist philosophies. Mix-and-match is now in; those who are quickest will be on top, and those who are slow to change will find themselves at the lower end.

Biblically speaking, this is the way to reach equality with socialist Europe, thus cementing an inseparable unity that will dominate planet earth.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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