From Asia Times Online:
A notable feature of 2004 was the volatility in oil prices – New York light sweet crude prices reached a peak of US$55.67 on October 25, ending the year up 33.6% at $43.45 per barrel. While a number of supply-side and supply-chain factors have contributed to this situation, the most significant long-term factor contributing to rising oil prices is an increase in Asian demand, most notably from China. China’s unprecedented growth not only makes it a driver of a long-term increase in energy prices, but also the most vulnerable to rising oil prices.
China, which has been a net oil importer since 1993, is the world’s number two oil consumer after the US and has accounted for 40% of the world’s crude oil demand growth since 2000. China’s proven oil reserves stand at 18 trillion barrels, and oil imports account for one-third of its crude oil consumption.
