China is forecast to overtake US. as the world’s biggest crude oil importer in 2016 and that is largely due to a group of new buyers who were not permitted to purchase foreign oil a year ago. It is also toe recalled that China, since the election of the new president Mohammadu Buhari, who has shown more interest in working with the west, has shun oil import from Nigeria.
Record Chinese purchases have been a rare bright spot for global producers amid oversupply that has driven prices to the lowest in more than 11 years. A record low price that is set to go even further lower than it is now.
The great news for oil bulls is that the imports from China, the world largest commodities user are predicted to accelerate further this year. This is due to the fact that privately held refineries accounts for almost a fifth of the total, according to a Bloomberg survey of company officials.
China government began granting import licenses in 2015 to these independent refineries known as teapots as part of an effort to boost private investment in the energy industry. Before now, only state-owned giants such as PetroChina Co. and China Petroleum and Chemical Corp. were previously allowed to import crude.
So, this may be also good news for Nigeria, since the ban or decision not to buy from Nigeria were only meant for state-owned oil corporations. So, our government could see new grounds here to form business partnerships with these new importers from China.
Chinese National Petroleum (CNPC) headquarters in Dongzhimen North Street