term oil demand, since
imported crude will be cheaper in yuan terms, Barclays
Capital said in a research note.
«If we are right, then the flow of diesel and gasoline
exports out of China could slow down and crude oil imports
pick up,» said Kevin Norrish, director of commodity
research.
Vienna's PVM Oil Associates also forecast possible
«higher import volumes in the second half» of the year in
China because of «higher domestic sales prices in
combination with a higher purchasing power in dollar
terms.»
But some analysts suggested that over the longer term
Beijing's currency moves will lead to less domestic oil
consumption _ and falling prices.
«The short-term impact is that oil in U.S. dollar terms
will be cheaper to Chinese refiners. The longer-term impact
of revaluation is really a cooldown of the Chinese
economy,» said Victor Shum, oil analyst at Texas-based
energy consultants Purvin & Gertz.
«The macroeconomic cooling will reduce oil consumption in
China and put downward pressure on crude prices.»
China is the world's second-biggest user of petroleum
products after the United States and third-biggest importer
after Japan and the United States.
--mor
1339 Local Time
1039 GMT