Published By : 15 Sep 2015 | Published By : QYRESEARCH
The fight for second place is excruciatingly close as the race continues to supply crude oil to the largest energy user in the world.
Angola, Russia, and Iran are all competing to become the runner-up after Saudi Arabia in becoming the top supplier of crude to China. The competition is all set to become tougher with Iran looking to recover its lost market share after sanctions and the United States Congress continues to debate a nuclear deal that will let it increase shipments.
China became the largest importer of crude, overtaking the United States only in the month of June. It made the most of the 50 per cent drop in benchmark prices over the last year and boosted its strategic reserves. The Asian country is projected to account for over a quarter of the international demand by 2016. As a result, the prize of becoming the prime supplier of crude will improve the economic health of the domestic producers who rely on energy sources exported from other countries for most part of the revenue budget.
Vice president of a Colorado based industry consultant HIS Inc., Victor Shum said that the numbers are extremely close, whether it is for the second or third place. In a global market that is extremely oversupplied, the competition for the expanding Chinese pie is growing day by day.
China is presently the largest oil buyer in the Asian region and the International Energy Agency forecasts that for the year 2015, the country will use an estimated 23.4 million barrels per day. This accounts for around 25 per cent of the consumption worldwide. Based in Paris, the International Energy Agency forecasts that China will utilize an estimated 10.9 million barrels on a daily basis this year.
Iran was the second largest crude producer of the Organization of Petroleum Exporting Countries until 2012