Liang Shuhe, an official with the foreign trade department of the Ministry of Commerce, said at China Petroleum Forum held in Beijing that current international oil price has seriously deviated from the normal track of demand-supply relations. China's crude oil import accounts for only around 6 percent of world trade volume and has limited impact.

Liang said financial capitals are mainly responsibly for oil price hike. Since last year US$800 billion from over 8,500 funds has been speculating in oil price in various forms and speculation premium has once reached US$15-20 per barrel.

It was learned that China's oil import growth would fall back considerably this year. Apparent consumption of oil is estimated to grow 6 percent nationwide, considerably lower than in last year. Crude oil import is to reach 130 million tons up 5 percent, almost 30 percentage points lower in growth. Import of finished oil products is to be 31.5 million tons down 17 percent while fuel oil is to reach 27 million tons down by 3 million tons. The reasons for import decline include the restraining effect of high oil price on demand, slowing growth of investment in fixed assets, easing of power demand and supply contradiction, rapid development of substitute fuels such as fuel ethanol and high base in the same period of last year.

Liang said China will make the international oil price formation process reflect the market supply-demand relations in China through establishing and developing oil futures market and participating in the enacting of international rules, as well as strengthening regional cooperation to face the "Asian premium" problem together.

By People's Daily Online