China Steps Up Speed Of Oil Stockpiling As Tensions Mount In Asia -- Ambrose Evans-Pritchard, The Telegraph
Beijing has ordered an "unprecedented" build up of oil reserves as West prepares for possible oil sanctions against Russia.
China is stockpiling oil for its strategic petroleum reserve at a record pace, intervening on a scale large enough to send a powerful pulse through the world crude market.
The move comes as tensions mount in the South China Sea, and the West prepares possible oil sanctions against Russia over the crisis in Eastern Ukraine. Analysts believe China is quietly building up buffers against a possible spike in oil prices or disruptions in supply.
The International Energy Agency (IEA) said in its latest monthly report that China imported 6.81m barrels a day in April, an all-time high. This is raising eyebrows since China’s economy has been slowing for months, with slump conditions in the steel industry and a sharp downturn in new construction.
Read more ....
My Comment: China still has a long way to go before reaching the stockpiles that the U.S. has .... but it is a trend that is impacting world oil supplies and prices and fueling speculation on why is China doing this right now.
No comments:
Post a Comment