Oil product demand in Asian key economies set to surge
Oil product demand in Asian key economies set to surge
SINGAPORE (AFT): Demand for key oil products in Asia's four biggest consuming countries -- China, India, Japan and South Korea -- is projected to rise sharply this year as their economies rebound, according to a petroleum industry journal.
The strongest growth in consumption is expected to be in South Korea, where demand rose 22.8 percent from a year ago in the first four months of 1999, the Singapore-based Strategist Oil Report said in its latest issue received at the weekend.
The oil products included liquefied petroleum gas, naphtha, gasoline, jet kerosene, diesel and fuel oil.
The Strategist tracked consumption in the four countries, which account for more than 75 percent of the Asian market, using different calendar periods.
Consumption in Japan and India rose 4.4 percent and 7.7 percent respectively from a year ago in the first half of 1999, while China's rose 7.8 percent over the first five months, the report added.
Consumption of oil products among the Big Four in 1998 was 11.1 million barrels and the figure has already been overtaken this year, the journal said.
The biggest boost to Asian demand for oil products in 1999 is expected to come from Japan, which is still regarded as the region's largest oil market, it said.
"Riding on the back of strong economic growth, Japanese demand for the major products surged to 4.4 percent to just under five million barrels per day" in the first half of the year, the report said.
South Korea's "impressive" demand for oil products, which reached 2.1 million barrels per day in the first four months of 1999, was attributed to the greatly increased use of jet kerosene for heating and air travel, and of naptha.
South Korea's consumption in 1999 could surpass 1997's record 2.07 million barrels per day if the economy met its projected growth forecast for the year, it said.
The South Korean economy is expected to top seven percent, after reporting a 9.8 growth rate in the second quarter of the year, it noted.
China's oil demand for the first five months of 1999 rose to over 3.24 million barrels per day, rising "against a backdrop of growing political and economic uncertainty," the report said.
Economic growth in China is forecast to slow to between six and seven percent this year from 7.8 percent in 1998.
The journal cited talk over the devaluation of the Chinese yuan and tensions with Taiwan as adding to jitters.
India's oil demand in the first half of the year stood at 1.8 million barrels per day.
"India's oil demand growth is expected to hold up despite signs its economy could be rattled by domestic political instability and military conflict with Pakistan," it said.