Wednesday, April 26, 2006

There's a new addict in town.

Maybe a few.

China's oil demand - growing. India's oil demand - growing. And even for oil exporters, demand is growing.

WSJ: Oil Minister Asserts Iran Won't Cut Exports Despite Nuclear Standoff. [$]


That plan doesn't account for another problem: soaring domestic consumption, which is eating into the amount of Iranian oil available for export. Mr. Vaziri said his country's gasoline use is growing at an eye-popping rate of 10% a year. Already, Iran is importing 25 million liters a day of gasoline, equivalent to nearly 160,000 barrels a day. Plans to add new refining capacity could gobble up another 500,000 barrels a day of Iranian crude production -- leaving no new crude to export to the rest of the world.

"We have a problem in the use of gasoline," Mr. Vaziri said.

MSN: How China is winning the oil race.