Home>News Center>China

Oil prices too high to stock strategic reserve
Updated: 2005-09-13 15:07

China is building facilities for its strategic oil reserve but stocking it with global prices at current levels would be too risky, a top planning official says.

Zhang Guobao, deputy director the State Development and Reform Commission, said China will not use imported oil to fill its strategic reserve at a press conference in Beijing September 13, 2005. [Xinhua]
Zhang Guobao, deputy director of the State Development and Reform Commission, said that even if China moves ahead with plans to stock the reserve it will not be buying oil from the international market.

"I can tell you clearly, we are not going to buy now," Zhang said. The government had planned to start filling the stockpile by the end of this year.  

"International prices are at high level, and to purchase oil for the strategic reserve now would be too risky," Zhang told a news briefing.

On Tuesday, New York's main contract, light sweet crude for delivery in October was trading around 63.35 dollars a barrel.

China was moving ahead with plans to create a strategic reserve as its economy expands rapidly and demand for imported oil grows, Zhang said.

"We think that under the present conditions that we need to set up an oil reserve system but there are many different views among economists on how many days of oil reserves is the optimum (level)," Zhang said.

"Some people say 90 days, others say 120 days; I beleive that this must be decided in accordance with the specific needs of each country," Zhang said, adding that the stategic reserve would likely be filled from domestic sources.

He said China produced 175 million tons of crude oil in 2004 and had net imports of 117 million tons, up 34.8 percent as it overtook Japan as world's second largest importer after the United States.
Page: 12

US Navy destroyer visits Qingdao
Buddhist monks attend MBA program in Shanghai
President Hu visits Mexico
  Today's Top News     Top China News

Oil prices too high to stock strategic reserve



Fresh nuke talks bid to end nuclear impasse



Hu signs trade pacts with Mexico's Fox



Many IMF directors want gradual yuan moves



Human tests prove AIDS vaccine safe



EU to release blocked Chinese clothes Sep 14


  College applicants cheated of US$12.3 million
  Typhoon Khanun hits East China, killing 14
  Hu signs trade pacts with Mexico's Fox
  Boeing sells first private jet in China
  Typhoon hits East China, killing 14
  Five appear in court over cockle pickers case
  Go to Another Section  
  Story Tools  
  Related Stories  
China will not import oil to fill strategic reserve
Oil, gas prices drop as markets calm down
Oil price not to restrain China, India growth
Oil prices may rise on storm concerns: analysts
'Joint energy move to benefit India, China'
CNPC to buy Canada oil firm for US$4b
Official rules out oil crises in China
  News Talk  
  It is time to prepare for Beijing - 2008