IEA Sees Southeast Asia Oil Demand Growing Until 2040

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IEA Sees Southeast Asia Oil Demand Growing Until 2040

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Southeast Asian demand for oil will keep growing until at least 2040 as emerging nations there rely on the fossil fuel to transport their rapidly growing populations, ship goods and make plastics, the International Energy Agency said on Tuesday.

Oil usage in the region will expand to around 6.6 million barrels per day by 2040 from 4.7 million bpd now, with the number of road vehicles increasing by two-thirds to around 62 million, the agency said in a report. It did not make any forecasts beyond 2040.

However, oil will continue to meet around 90 percent of transport-related demand in Southeast Asia, especially for trucks and ships, Keisuke Sadamori, the IEA’s director of energy markets and security, said at the Singapore International Energy Week.

Oil demand from the petrochemicals sector, one of the largest users of the fossil fuel, will also grow fairly substantially, Sadamori said. Oil can be used as a raw material for plastics and textiles.

Meanwhile, Southeast Asia’s overall energy demand is expected to climb nearly 60 percent by 2040 from now, led by power generation, as rising incomes in the region spur more people to buy electric appliances including air conditioners, the IEA said.

On the other hand, Russia held on to its position as China’s top crude oil supplier ahead of Angola and Saudi Arabia for the seventh straight month in September, with shipments hitting a record as refiners rushed to buy lower-sulfur oil to meet cleaner fuels standards.

Imports from Russia last month were almost 6.35 million tonnes, or 1.545 million barrels per day, up 60.5 percent from the same month last year, according to a detailed breakdown of commodity trade data released by the General Administration of Customs.

For the first three quarters, crude volumes from Russia gained 18 percent year-on-year to nearly 45 million tonnes, or 1.2 million bpd, also holding firm its top ranking.

The lower cost of Russian crude and China’s shift to cleaner diesel was the key driver behind the record Russian oil purchases.

Meanwhile Angola, China’s second largest source of crude, supplied 11.7 percent more oil than a year earlier at 4.677 million tonnes, or 1.14 million bpd.

Angola also maintained the second spot for the January-September supplies ahead of Saudi.

Supplies from Saudi Arabia were up 9.6 percent last month year-on-year at 4.276 million tonnes, or about 1.04 million barrels per day (bpd).

Shipments for the January-September period dipped 0.6 percent on year at 38.52 million tonnes, or 1.03 million bpd.



Congress to Vote on New Restrictions on US Investment in China

FILE PHOTO: A person sits on a bench near Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A person sits on a bench near Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
TT

Congress to Vote on New Restrictions on US Investment in China

FILE PHOTO: A person sits on a bench near Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo
FILE PHOTO: A person sits on a bench near Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo

Congress is set to vote in the coming days on legislation restricting US investments in China as part of a bill to fund government operations through mid-March, lawmakers said late on Tuesday.
In October, the Treasury finalized rules effective Jan. 2 that will limit US investments in artificial intelligence and other technology sectors in China that could threaten US national security.
The bill expands on those restrictions and also includes other provisions aimed at concerns about China, including a requirement to study national security risks posed by Chinese-made consumer routers and modems and mandate reviews of Chinese real estate purchases near additional national security sensitive sites.
"China is an economic adversary and we must take bold action to safeguard our future against the Chinese Communist Party," Reuters quoted Senator Bob Casey, a Democrat, as saying.

"This legislation takes bold action to restrict US investments to stop our national security technology from getting into the hands of our adversaries before they can use it against us.”
The Chinese Embassy in Washington did not immediately comment.
The bill will also require the Federal Communications Commission to publish a list of every entity that both holds an FCC license or authorization and has any ownership by foreign adversarial governments, including China to ensure the commission "knows when telecommunications and technology companies have a connection and foreign adversary."
Washington is moving on a number of fronts to further restrict Chinese products.
An annual defense bill could ban China-based DJI and Autel Robotics from selling new drones in the United States market, while the Commerce Department is working to finalize rules in the coming weeks that would bar Chinese automakers from selling vehicles in the United States and bar China Telecom from US operations.
Lawmakers have criticized major American index providers for directing billions of dollars from US investors into stocks of Chinese companies that the US believes are facilitating the development of China’s military.
The Treasury rules and legislation cover semiconductors and microelectronics, quantum information technologies and certain AI systems aimed at preventing investments in Chinese technologies like cutting-edge code-breaking computer systems or next-generation fighter jets.
Representative Rosa DeLauro, the top Democrat on the House Appropriations Committee, said "for years I have watched American dollars and intellectual property fuel the Chinese Community Party's technology and capabilities... This legislation builds on the regulations put into place this year by the Biden Administration, and sets the stage for continued bipartisan efforts to protect and rebuild our critical national capabilities."
The outbound legislation covers technologies listed in the Treasury order and adds additional AI models that use some semiconductors, AI systems designed for exclusive military or government surveillance end use, hypersonic systems and additional export-controlled technologies.