China`s impact on the world crude-oil

China`s oil market is in transition, and this has dramatically shaped its crude and petroleum product balances. During the last five years (1989-1993), imports of crude and refined products increased rapidly, while exports of crude and refined products declined year after year. In 1993 petroleum product imports surged to a record high of 354,000 barrels per day (b/d) at the same time that crude imports also increased to a record high of 315,000 b/d. If we combine imports and exports of both crude oil and products, China was a net oil importer of about 200,000 b/d during 1993. This marked the first time since 1960s that China has fallen into net oil importer status. Four major changes have characterized China`s oil imports and exports during the last two decades. First, China has made vigorous efforts to diversify its total exports away from oil-based goods to non-oil items. Second, the composition of oil exports has changed, shifting from dependence on crude oil exports toward a greater proportion of finished or semi-finished products. Third, the oil import pattern has also shifted from primarily heavy products to primarily light products. Finally, Northern China has continued to export oil across the Pacific Basin, butmore » Southern China has begun importing petroleum from Indonesia and the Middle East. These trends indicate that China will become increasingly vital to both the regional and global oil trade. Overall, Asian oil imports are expected to double in the next ten years.« less