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The main reason for the increase in demand for crude oil in China, South Asia, and Southeast Asian countries is the rapid economic development of these countries. The number of cars in China is rapidly increasing. There is often a shortage of gasoline and diesel in China. In 2007, four coastal provinces in China were even forced to adopt a temporary policy of quantitatively allocating auto fuel.
China has given up its plan to independently protect the demand for crude oil, and has continuously increased its crude oil imports in order to meet growing energy demand. Experts predict that by 2010 China must import 200 million tons of crude oil each year, which is three times that of 2000.
Experts pointed out that only efforts to weaken the growth in demand for crude oil can reduce the price of crude oil in the international market, but at present, no similar situation can be seen. Despite China's attempt to curb the pace of industrial growth, China's industry continues to grow at a double-digit rate and will continue to exceed government expectations.
China’s leaders are looking for new supplies of crude oil globally, and they often encounter resistance. The crude oil supply contract signed between the Chinese government and some countries has often been criticized by the economic personnel of a few western countries. In addition, the dispute between China and Japan over the East China Sea oil and gas fields has continued for several years. The reserves of this oil field are approximately 25 billion tons.
At the same time, China's crude oil processing companies cannot raise the prices of gasoline and other products in accordance with the rise in international crude oil prices because the Chinese government requires these enterprises to supply the domestic market at a very low price. This limit price policy has caused China's crude oil processing companies to reduce some of their production capacity in order to avoid greater loss of profits. In addition, China's high inflation is also a problem that the government urgently needs to solve. This problem forces the government to freeze the price of domestic crude oil.
According to reports, OPEC recently forecasted that China’s crude oil demand will double within 25 years. Energy demand from China and other South Asian and Southeast Asian countries will also increase significantly. Its crude oil demand currently accounts for 17% of the world’s total crude oil demand, and it will reach 2030. This proportion will increase to 29% in the year.