China, the world’s second largest oil consumer, will build up its oil reserve faster and much larger. From MarketWatch.com :
China’s plans to build its strategic petroleum reserves to at least 100 million barrels by 2010 could add more pressure to crude prices which have already been at record highs.
The world’s second-largest oil consumer already has built two underground storage reserves in east China and will put into use two more storage bases soon, a senior Chinese official said over the weekend, according to China’s official Xinhua news agency.
“Although China is not the only source of rising oil prices, it has consumed the largest share of the global increase in oil demand in the last seven years,” said Donald Straszheim, chairman of Straszheim Global Advisors and an expert on Asian economies. “Building reserves will of course add more pressure on global oil prices.”