From: Jeff Danoff
Sent: Tuesday, June 20, 2006 12:20 PM
Subject: China Oil Reserve To Boost Demand-Analyst --
-- DJ MARKET TALK: China Oil Reserve To Boost Demand-Analyst --
 
  [Dow Jones] A planned Chinese strategic petroleum reserve could hold between
120 mln bbl and 150 mln bbl of crude oil once it's up and running, says analyst
Paul Ting of Paul Ting Energy Vision. The first of the four planned facilities
for the reserve, with a capacity of about 35 mln bbl, is expected to be
completed later in the summer. The other three of roughly the same size are due
for completion by 2008. China says it will work with Saudi Arabia to develop the
reserve. The move comes as growing threats to world energy supplies prompt major
oil-consuming nations to build or expand strategic reserves. India, among other
nations, earlier this year indicated a desire to build a reserve of about 35 mln
bbl, while Japan has said it wants to increase the size of its own reserve by 15
mln to 20 mln bbl. Ting says China is likely to follow the US model of filling
its reserve with domestic oil. Nevertheless, together, the additions could boost
global oil demand by roughly 150,000 b/d, Ting estimates. "By itself, it does
not dictate oil prices, but in conjunction with all other fundamentals, it could
certainly imapact oil prices," he says. (masood.farivar@dowjones.com)
 
  Contact us in New York at 201-938-2030 or cassandra.sweet@dowjones.com.
 
  (END) Dow Jones Newswires
  06-20-06 1318ET
  Copyright (c) 2006 Dow Jones & Company, Inc.(AP-DJ-06-20-06 1718GMT)

  20-Jun-2006  17:18:33 GMT
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