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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (3246)	5/24/2004 1:29:25 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China takes steps to start oil reserve May 25 Michael Williams \| Wall St Journal \| Amsterdam In a step that could boost Chinese demand for oil, Beijing's industry tsar said the country had started building tanks and other facilities for a strategic petroleum reserve but hadn't begun stockpiling fuel. The comments by Zhang Guobao, vice-chairman of China's National Development and Reform Commission, represented some of China's most detailed statements on its widely watched plans for a strategic oil reserve. China had said it planned to create a stockpile but offered few details. Oil traders have been eager to know whether such stockpiling is partly behind surging Chinese demand for oil, which has helped drive petroleum prices to their highest levels in two decades. The fact that China isn't stockpiling yet means its economy is fuelling the market demand - and that once the reserve purchases begin, Chinese oil purchases could grow. Mr Zhang stressed that China would build its reserves slowly so as not to disrupt markets. advertisement advertisement "Construction [of the facilities] will be done gradually and additions will be made gradually," he said. He provided no indication regarding when oil purchases might begin. In the longer term, the reserve is likely to be a stabilising influence on the world economy, by giving China's manufacturing sector a buffer in the event of sudden supply disruptions. Western policy makers have been urging Beijing to build a strategic storehouse, as the US, Japan and other economic powers have done. afr.com