The item in question: a new report showing that China just became the world's top oil importer.
According to the Financial Times, Chinese trade data revealed that crude imports jumped 13% in April. Hitting a total of 3.029 million metric tons -- or about 222 million barrels.
That now puts China's consumption ahead of the U.S. with Chinese imports running around 7.4 million barrels per day, as compared to about 7.1 million barrels daily for American imports. Related: Oil Markets Have Little To Fear From Iran For Now
The big monthly rise in China's imports is notable. With a 13% increase being a signal that Chinese demand is continuing to expand rapidly, despite years of double-digit growth.
In fact, China appears to have been accelerating its efforts lately to find new crude supplies. Having completed import deals with nations like Russia and Myanmar. Related: How China Could Hold The Oil Markets To Ransom
All of which suggests that this is going to be the world's go-to energy market for the foreseeable future. Meaning that project developers will be increasingly looking at logistics for shipping crude to this part of the world.
I wrote Saturday about such considerations with regards to new projects in South America. In short, Pacific shipping lanes are going to be a major advantage for new projects -- both when it comes to selling product, and even in terms of obtaining project financing from energy-minded Asian consumers. Related: Oil Sector May Not Cause Financial Apocalypse After All
That's going to be good for emerging projects in places like Chile and Peru. And the rise of China as an oil consumer could benefit projects in places like East Africa -- which now have good access to Chinese markets via the recently-commissioned import pipeline through Myanmar.
Watch for China-financed deals being done in these locations -- and beyond.
Here's to a new number one,
Dave Forest
More Top Reads From Oilprice.com:
- One Industry Cashing In Big On Cheap Oil
- This Deal Could Completely Change North American Energy Dynamics
- The Greenest Oil Companies In The World
