China's Appetites
The price of oil hit a record $57.50 US yesterday, and experts predict a potential rise to about $60 per barrel in the near future. The CSM explains that the hikes are in part due to seasonal winter demand but the lion's share is caused by the growth in Chinese demand.
While OPEC has agreed to increase production by 500 000 barrels daily to meet the increased demand, potential trouble in Iran and in Venezuela could send oil prices even higher.
One has to wonder about China's latest appetite for a 3/4 of a billion barrel reserve and its talk of war against Taiwan. Are these two different sides of the same gluttony?
The main forecasters continue to predict that China will represent a third of growth in demand. Some of the Chinese appetite comes from work on filling a strategic petroleum reserve of up to 750 million barrels of oil.
While OPEC has agreed to increase production by 500 000 barrels daily to meet the increased demand, potential trouble in Iran and in Venezuela could send oil prices even higher.
One has to wonder about China's latest appetite for a 3/4 of a billion barrel reserve and its talk of war against Taiwan. Are these two different sides of the same gluttony?
posted by kaqchikel at
3/18/2005 08:30:00 AM
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