China’s Growing Demand for Oil and Its Impact on U.S. Petroleum Markets

April 7, 2006
Report

This CBO paper reviews major developments in China’s demand for crude oil and refined petroleum products over the past decade and considers the implications of those changes for motor fuel prices in the United States through 2010.

Summary

Strong economic growth in Asia, particularly in China, has had a significant impact on global markets in recent years, including the markets for crude oil and refined petroleum products. This CBO paper reviews major developments in China’s demand for crude oil and refined petroleum products over the past decade and considers the implications of those changes for motor fuel prices in the United States through 2010. The paper was prepared in response to a request from the Ranking Member of the Senate Committee on Energy and Natural Resources. In keeping with CBO’s mandate to provide objective, impartial analysis, the paper makes no recommendations.

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