China finishes filling strategic oil reserves

March 18, 2009


Reuters reports that the Chinese have filled their first stage strategic oil reserve – China govt oil reserve full – shipper:

* China ship exec says strategic oil reserves full up

* First acknowledgement of 100 mln bbls govt inventories

* Urges Beijing to rent floating storage to add to stocks (Adds more analyst comment, corporate reserve, writes through)

The China Daily reports that Chinese oil imports have dropped substantially now the reserve filling is complete – China’s crude imports drop to 2-year low

China cut its crude oil imports for four consecutive months since October 2008, against common belief that the country should make use of the plummeting crude oil prices and shipping cost to increase oil reserves.

Crude imports dropped to the lowest level in at least two years in February to 11.73 million tons, about 3.07 million barrels a day, according to data released by the customs department on Wednesday. That represents a drop of 19.7 percent compared to last February.

Analysts say the country’s four strategic oil reserve tanks have already been filled and there are not enough tanks to store more, said the Shanghai-based Oriental Morning Post.

Thanks to TheOilDrum for the link.