China's oil demand offsets drop in OECD, Aramco says

  • Share via facebook
  • Tweet this
  • Bookmark and Share
SAUDI ARAMCO: State oil giant Saudi Aramco said rising oil demand from its largest crude buyer, China, will offset declining consumption elsewhere (Getty Images)

SAUDI ARAMCO: State oil giant Saudi Aramco said rising oil demand from its largest crude buyer, China, will offset declining consumption elsewhere (Getty Images)

State oil giant Saudi Aramco said rising oil demand from its largest crude buyer, China, will offset declining consumption elsewhere.

"I believe increased Chinese demand offsets declining consumption in the OECD nations," Khalid Al Falih, chief executive officer of Aramco said in a speech posted on the firm's website.

"[It] is essential to encouraging necessary investment in exploration as well as oil production, refining and transportation capacity, which ultimately benefits all petroleum consumers," Falih said.

China, the world's No. 2 oil user, is surpassing the US as Riyadh's largest crude oil buyer with volumes poised to touch an average of 1 million barrels per day this year, or roughly one-fifth of China's total crude imports.

"Our relationship is founded on the provision of steadily growing volumes of crude oil currently about a million barrels per day, making Saudi Aramco China's largest and most reliable supplier," Falih said.

Sino-Saudi trade ties have grown as Chinese economic growth has boosted its fuel consumption and increased its reliance on the kingdom's crude.

"The oil industry itself looks to China as the largest source of incremental demand growth."

Aramco has already partnered Sinopec in the joint venture Fujian plant in southeast China.

It signed last week an initial deal with China's Sinopec Group to jointly build a $10-billion Yanbu refinery on the Red Sea coast, a pact that further cements ties between the two energy giants.

Aramco said on Sunday its subsidiary, Aramco Overseas Co had signed a memorandum of understanding with PetroChina Company Ltd, a subsidiary of China's state-owned oil giant CNPC to develop a 200,000 bpd crude refinery in in Yunnan, the Chinese province that borders on Myanmar.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Most Discussed
  • 22
    World's most pierced man refused entry to the UAE

    Its quite hypocritical & childish that most people use their children as excuses to persecute their views unto others. Were all of you as innocent when... more

    Wednesday, 20 August 2014 9:03 AM - Calvin Pinto
  • 13
    Baby NOT on board?

    I am sure the Writer of this article as well as some of the guys who commented would have been the best behaved kids in their times; never ran around... more

    Wednesday, 20 August 2014 4:44 PM - Wildwine
  • 4
    CEO of Just Falafel to step down

    Just Falafel is our inspiration and I wish Mr. Fadi would come and show us how to expand our brand. Whatever their problems, Just Falafel have done extremely... more

    Wednesday, 20 August 2014 5:50 PM - The Biryani Works