RAB's Richards says U.S. more than Asia to blame for oil prices
Thu Aug 4, 2005 8:21 AM BST
By Pratima Desai
LONDON (Reuters) - Rampant demand for crude oil in the United States is a bigger factor behind sky-high prices than strong demand from China and other fast-growing Asian economies, a hedge fund manager told Reuters.
Hedge fund firm RAB Capital's Philip Richards told Reuters in a recent interview that oil prices over time will probably surpass recent record highs unless Western countries curb demand.
"What's really causing the oil price to go up is the fact that America continues to guzzle (gasoline) as if there is no tomorrow," Richards said.
"There really wouldn't be a demand problem on the oil side were the West to adopt a prudent energy-saving regime."
U.S. crude oil spiked up to new records above $62 a barrel after the death of Saudi Arabia's King Fahd this week raised worries about world supplies.
Many oil analysts and traders have recently blamed the rocketing cost of crude oil on higher demand from China and India, where economic growth has taken off in recent years.
But the numbers show a different picture, Richards said.
Chinese demand for crude oil in 2002, 2003 and 2004 was 6.4 percent, 7.1 percent and 7.8 percent of total daily demand of 77.9, 79.4 and 82.3 million barrels a day respectively, according to the International Energy Agency.
The IEA expects Chinese demand in 2005 and 2006 to rise to 8.1 and 8.5 percent of world demand respectively. Asian demand is forecast at about 19 percent in 2006, up from 18.6 percent this year and 18.1 percent in 2004.
In comparison, the United States has used up more than 30 percent of world supplies over the last three years, and the IEA sees that figure holding steady this year and next.
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