High oil prices will have adverse affects on the global economy: a forecast
The price of crude oil will peak at $90 per barrel by March 2006, CNOOC Dep. Chief Economist Zhang Weiping predicted.
Speaking at conference on China's energy needs in Beijing, he added that global oil production to peak at 94-100 mb/day during the next five years. "High oil prices will have adverse affects on China's economy," said Zhang.
China's expenditure on oil imports could reach or even exceed $60 billion on oil imports this year, up from $40 billion in 2004, putting "high pressure" on China, said Xia Yishan, Senior Research Fellow at the China Institute of International Studies.
China's annual crude demand is expected to rise by 9.7% this year, suggesting that the country will need to import 135 million tonnes this year, accounting for 42.45% of total demand and exceeding last year's figure of 40.5%, said a recent report by the Development Research Center under the State Council.
The country's net oil imports stood at 120 million tons in 2004.