WHAT IF...?

After a brief rise in early morning trading, crude oil prices retreated to levels seen in the overnight market. Prerelease  surveys though expect stockpiles may have been drawn down in the latest reporting period.

Crude oil prices  fell close to $76 per barrel in New York Tuesday after the International Energy Agency said China was now the  largest energy consumer. The news had marginal impact on the market, but signals a new age in the history of energy.

The United States, the largest consumer for more than 100 years, remains far and away the largest consumer of oil, burning 19MM bpd, compared to 9.2MM bpd in China. But the report focused policy makers and traders on China's burgeoning demand, which is expected to grow exponentially in the coming years.

China's standing as the largest consumer as of 2009 includes energy from coal, oil, nuclear power and renewable resources. This contention may be challenged soon as there is some skepticism that China can continue the torrid pace of economic growth.

China has been very good at growing quickly, but not so good at creating wealth, a requisite element to maintaining growth and consequently energy demand.

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