Ben Lobel, Copywriter at DailyFX
- New tool charts global commodity trading over the last decade
- The UK has reduced its oil imports by over 75 million barrels in five years
- African countries lead the way in reducing their oil imports
The world is slowly reducing its reliance on oil and a new online tool from Daily FX has revealed the nations that are leading the movement.
Many of these are from Africa, including five of the ten countries that are decreasing their oil imports at the quickest rate. Morocco takes top spot after reporting a staggering 99.99% fall in the number of barrels it imported between 2013 and 2018.
It’s followed in the list by three other countries from the continent, with Kenya, Burundi and Gambia all reducing their imports by over 99%.
In the UK, oil imports dropped by more than fifth (21%) over the five years.
While the country remains the 12th biggest global importer of oil, including petroleum oils, it has taken great strides towards reducing its dependency on such environmentally-harmful fuels.
During the studied time period, the UK had the eighth-best rate in Europe for reducing such imports, with its intake dropping by 76.9 million barrels (from 359 million to just over 280 million).
In financial terms, this meant the UK spent $13.74 billion (£10.63 billion) less on oil. In 2013, the country spent over $40 billion on the commodity (£30.9 billion), but this fell to $26 billion (£20 billion) five years later.
Malta (93%) and the Republic of Moldova (92%) experienced the most significant decreases across the continent.
Internationally, the 10 countries that have reduced their reliance on oil the most are:
- Morocco (>99%)
- Kenya (>99%)
- Burundi (>99%)
- Gambia (>99%)
- Seychelles (>99%)
- Malta (93%)
- Republic of Moldova (92%)
- Estonia (86%)
- Botswana (84%)
- Israel (83%)
Globally, the money spent on oil imports fell by 28% but still remained above the $1 trillion (£773 billion) mark. From over $1.6 trillion in 2013, it dropped to under $1.2 trillion in 2018. The world’s 17 biggest importers account for over $1 trillion of this (86% of the total value), with the remaining 81 countries in the research making up the remaining $0.2 trillion.
The data has been visualised on a new interactive tool built by Daily FX, the leading portal for forex trading news, which displays global commodity imports and exports over the last decade.
The tool shows that China has recently overtaken the USA as the world’s biggest importer of oil. The Asian giant imported nearly 3.4 billion barrels in 2018, which was over 240 million more than the USA. China tops the list having increased its oil imports by 64% since 2013 – nearly six times the rate of its rival (11%).
Israel is the only country to drop out of the top 10. The country was the seventh biggest importer in 2013, but has fallen down the rankings thanks to its impressive 83% reduction.
Taking its place in the top 10 is Singapore, which increased its imports of oil by 18% over the time period. In 2013, the city-state imported 320 million barrels, and this rose to 376 million in 2018.
The top 10 global importers of oil (2018) are:
- China – 3.38 billion barrels
- USA – 3.14 billion barrels
- India – 1.65 billion barrels
- Japan – 1.09 billion barrels
- The Republic of Korea – 1.09 billion barrels
- Germany – 622 million barrels
- Netherlands – 506 million barrels
- Italy – 460 million barrels
- France – 397 million barrels
- Singapore – 376 million barrels
Daily FX’s unique tool allows traders to spot developments in the flow of commodities and the growth of both supply and demand while comparing the changes to critical economic indicators.
John Kicklighter, Chief Currency Strategist at Daily FX, said: “The world is changing and so is the way that it uses energy. Renewable and environmentally-friendly fuel options are the future, and while the end of crude oil is still far off, there will be considerable changes in the world’s top importers and exporters. Our new tool helps track those changes.
“While some of the larger countries have increased their appetite, it is interesting from an investor’s perspective to see the UK exploring alternative energy sources and reducing its dependence on oil.”
‘Global Commodities’ takes the form of a re-imagined 3D globe where the heights of countries rise and fall to show the import and export levels of a range of commodities over the last decade. The data visualisation allows users to switch views from a single commodity or market and show information relevant to that commodity or market’s performance.
To learn more about Global Commodities and view the tool, visit: https://www.dailyfx.com/research/global-commodities