China's falling oil demand cushions shock from Saudi pipeline bombing
Oil hit $100 per barrel after Saudi pipeline bombing, but China's falling demand is keeping prices from rising higher.
Saudi Arabia's crucial East-West pipeline was bombed last week, forcing the company Aramco to shut it down as a precaution. Oil prices spiked past US$100 (A$140) per barrel for the first time since May.
Fuel prices are climbing worldwide, with riots and protests reported from Syria to Portugal. Prices would have climbed much higher without China's falling oil demand.
China, the world's largest oil consumer, is cutting demand for the third year running due to earlier stockpiling and a shift to electric vehicles. China has cut its oil imports by up to four million barrels per day, offsetting much of the disruption from the Middle East crisis.
- Up to 4 million barrels per day
- China's import cuts
- 1,200 kilometres
- Pipeline length
Why it mattersChina's spending decisions drive global energy prices. Its reduced demand is the main reason prices haven't soared even higher despite the crisis.
AustraliaPetrol prices are already climbing at Australian service stations. How much higher they go depends on whether Middle East tensions worsen and on China's continued demand levels.
✓ Claims checked against the source. checked 3 d ago
