CHINA’S implied oil consumption grew 2.5 percent in 2015 on strong gasoline and kerosene use, defying a slowing economy and falling demand for other commodities such as coal and steel.

    Yet oil demand growth in 2016 is seen lower as the world’s second-largest economy is locked in a protracted slowdown.

    China consumed a record 10.32 million barrels per day (bpd) of oil in 2015, up 256,000 bpd on the previous year, according to preliminary Reuters calculations based on government data.

    China’s strong demand, especially for crude and gasoline, has been a rare pillar of support for oil prices, which have tumbled over 70 percent since mid-2014 to their lowest in more than 12 years, as global exporters pump a million barrels of crude a day in excess of demand.

    China’s oil demand should continue to support global oil prices despite overall bearish sentiment, said analyst Daniel Ang of Phillip Futures in Singapore.

    “Just looking at oil demand alone for China, it’s likely to remain strong or at least grow at the same pace as it has been,” he said.

    Chinese oil demand is expected to grow 420,000 bpd in 2016, compared to estimated 600,000 bpd last year, according to Standard Chartered, with the International Energy Agency forecasting a similar drop in its most recent monthly report.(SD-Agencies)