There is evidence of falling oil imports from China and India, though it will take time to judge whether this is due to seasonal factors or a structural reason, a leading UAE official has said.
However, Ali Obaid Al-Yabhouni -- UAE Opec Governor and the General Manager of ADNATCO and NGSCO, the shipping arms of Abu Dhabi National Oil Company (ADNOC) -- said the oil market will not be affected by the latest chapter in the global economic crisis.
"After several years in which attention was focused on supply, it is now evident that we need to keep a close eye on demand, despite the fact that emerging economies have accounted for the bulk of the oil market's demand growth over the last few years, notably China and India," Yabhouni said while addressing the Middle Petroleum and Gas Conference (MPGC 2011) in Dubai on Tuesday.
Yabhouni cited recent forecasts which suggest that China's economy will grow at 9% in 2011, while India's growth will slow slightly to 7.7%. This remains remarkably strong.
"However, there are ominous clouds on the horizon that represent a major downside risk. HSBC's recent China Flash Purchasing Managers Index showed the Chinese factory sector contracted for a third consecutive month last month, as both new orders and new export orders fell on slack global demand," he was quoted by UAE's official news agency Wam as saying.
