China, the second biggest global oil consumer, said oil demand will increase 4 percent to 10.36 million barrels per day this year, Reuters reported. The report by China National Petroleum Corporation (CNPC)'s Research Institute of Economics and Technology said along with this rise in oil demand, new refineries in China have also expanded demand. The International Energy Agency had previously forecasted oil demand in China would increase 3.7 percent in 2014.
In this increase in domestic oil demand, refined oil product exports are expected to grow 30 percent to 313 million metric tons in 2014, following a 17.5 percent increase in 2013, The Wall Street Journal reported. Two refineries in China are expected to open in the first quarter of 2014 and have a collective capacity of 440,000 bpd.
With CNPC's refinery throughput projection of 10.2 million bpd, China's dependency on foreign imports of crude will increase to 58 percent.
"Domestic refining capacity will grow rapidly, driving crude oil demand...while domestic crude oil production would only rise 2.2 percent," the report said, according to Reuters.