-- 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)