The Chinese government is rationing electricity in a bid to meet ambitious energy and environmental targets.
As a result people, organisations, are trying to use their own diesel generators.
As a result there is a shortage of diesel.
As a result, in China’s southern city of Chongqing for example, a crematorium has been unable to fire its furnaces for several days, leaving 10 corpses to uncremated.
Traders are profiting by shifting more diesel into China, and so the Chinese shortages “are reverberating through the global oil market.”
The news was also significant enough to influence currency exchange markets, reaching XE.com, a global provider of foreign exchange tools, news and services.
The International Energy Agency expects Chinese demand for oil to continue to rise “sharply” later in the year. Diesel prices in Europe (as I have noticed with my car) are up nearly 20 per cent since the beginning of the year.
The Chinese economy is expected to continue to grow at around 10% a year next year, and the year after, and the year after.
That will push up demand for diesel still further.