CHINA: OPEC's president visits China to discuss future needs for the energy-hungry nation
Record ID:
858886
CHINA: OPEC's president visits China to discuss future needs for the energy-hungry nation
- Title: CHINA: OPEC's president visits China to discuss future needs for the energy-hungry nation
- Date: 23rd December 2005
- Summary: CLOSE OF (SOUNDBITE) (English) SHEIKH AHMAD FAHAD AL-AHMAD AL-SABAH, SAYING: "In 2005 the situation has been changed for a stable situation. I think the Chinese demand will not control the prices like it was in 2004, 2005 but it will change the culture of the market."
- Embargoed: 7th January 2006 12:00
- Keywords:
- Location: China
- City:
- Country: China
- Topics: International Relations,Energy
- Reuters ID: LVAEEDA9U1S60WRMXWPNP92ZNSN1
- Aspect Ratio:
- Story Text: Top OPEC officials were in China on Thursday
(December 22) to seek a better understanding of its
volatile demand growth, in the first formal talks with a
country they say has changed the culture of world oil
markets.
The world's second-largest oil consumer is keen to
secure supplies as its reliance on imported crude grows,
while the Organisation of the Petroleum Exporting Countries
(OPEC) wants to draw up a better picture of its appetite
for oil.
Soaring demand last year caught out the cartel, forcing
it to pump near full throttle and giving it little
ammunition to fight high prices.
OPEC's president said they expected more stable demands
from China in the future.
"We believe what was in 2004, 2005 was unusual years.
And for that we are working to know what exactly will be
the stable growth of demand in China. And as they made
their presentation for us, still they will need crude oil
and gas for future," Sheikh Ahmad al-Fahd al-Sabah told a
news conference in Beijing. Sheikh Ahmad said China's oil needs have changed the
culture of the market, evening out
seasonal imbalances.
"In 2005 the situation has been changed for a stable
situation. I think the Chinese demand will not control the
prices like it was in 2004, 2005 but it will change the
culture of the market," said Sheikh Ahmad.
China does not publish details of its oil inventories
-- so that when it stocks up, demand can seem stronger, but
when it is emptying them there is less call on
international markets.
Sheikh Ahmad said China had brought up soaring oil
prices during meetings.
"Like any other consumer - and all the consumers think
the price is very high. And we think the price is fair. And
this is a normal situation between the consumer and the
producer. But this is why we are making the dialogue - just
to know what will be the fair price which will be accepted
by all the parties of the market," said Sheikh Ahmad.
Producers say limited refining capacity, something over
which it has scant control, has propelled prices this year.
Sheikh Ahmad said there were a slew of other factors
also responsible for driving up prices.
"We believe the prices now is not related to the demand
and supply. The prices now related to a lot of factors. One
of those factors is the worry about the secure of supply in
the future, the other, the shortage of the refining
capacity, the weather, like the hurricanes and the
earthquake - all those kind of crisis. And, of course,
other geopolitics problems, speculation - all those factors
the main factors related to the prices now more than demand
and supply," said Sheikh Ahmad. - Copyright Holder: REUTERS
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