China's Oil Security And Trade In The World Oil Market

China has always had huge oil and oil products imports these years because the domestic supply can't meet the demand. China has entered into the economic development period of mid-industrialization, which has increasingly enhanced the degree of foreign reliance on oil as well. On the condition of opening economy, an imbalance of demand and supply in the world's oil market has reduced China's oil import stability, and the world oil price fluctuation on has been affecting the economic benefits on China's oil import & consumption more greatly and rapidly. The continuing upward trends on world oil price have yet strengthened the stress of the national oil security system construction. This paper begins with the domestic demand & supply status, and the analysis to world oil market. In these situations, it then presents the necessity of a sound and effective national oil security strategy. On the basis of domestic consumption control, we should address distribution of the world oil resources. So, this paper focuses on the improvement of oil foreign trade strategies.Oil foreign trade especially crude oil exports are very important in our country's foreign trade system, and they also play a decisive role in the development of China's Industries and economics. China's present foreign trade system for oil is not perfect and has many defects. There are many problems that are left to be solved in China's oil trades. So before referring to the trade strategy, this paper describes the history and present situation of China's oil trade, on basis of which it analyses the features of China's oil trades, such as characteristics and changes of China's import and export structure, import sources and export destinations, the relativity of oil trades to the GDPs and so on. Then this paper goes on to the factors that affect the oil foreign trades, including domestic oil supply, domestic oil demand, the level of foreign trade development, exchange rates and the world oil price fluctuation. In studying the supply and demand gap, this paper uses a supply and demand balance method to decide the gap and uses method of oil consumption elastic coefficient, domestic energy consumption development and energy consumption elastic coefficient to estimate the future demand. From these analyses, it makes clear the basic situation and trends of China's oil foreign trade and the problem that should be solved and the reasons why they exit. In the conclusive part of this paper, it establishes the import strategy that includes controlling the supply and demand, importing the proper amount of oil, building a powerful oil trade group and so on. I hope it can bring some help to China's oil foreign trades.