China to Let World Know How Much Oil It Reserves.docVIP

China to Let World Know How Much Oil It Reserves At the eighth Leaders’ Summit of the Group of Twenty（G20） recently held in Australia， China announced that it would regularly release its petroleum inventory data. As the world’s largest oil importer， China’s current dependence on foreign petroleum is as high as 60%. Therefore， it’s self-evident that the move will have a great impact on the international petroleum pricing and trading. China’s regular petroleum inventory data， which cover data on the country’s strategic crude oil reserve and commercial reserve， as well as inventory data on refined oil， fuel oil and others， will offer futures traders an important trading guideline， according to Gao Jian， an analyst at Zhuochuang Information. Guideline to petroleum futures trading According to a recent World Energy Outlook report re-leased by the International Energy Agency， China will overtake the United States as the world’s largest oil user around 2030 before its demand for oil grows to its peak at a slow rate. Currently， most of the major countries across the world have oil inventory data open to public. It is of great significance for China， one of the world’s major oil importers and consumers， to regularly disclose the inventory data. “China’s move to regularly disclose its oil inventory data will offer an important trading guideline to futures trades in the international market，” Gao says.“Futures trades， who focused on the U.S. market as China kept the inventory data undisclosed， will pay close attention to the disclosure.” With an important position in the international oil market， China’s every move in the oil market will be a focus of attention. Industry insiders believe that if the data keep undisclosed， it will entail erratic fluctuation of market prices， as they are very important to the oil pricing and trading. “Oil inventories have a connection with the supply and demand. An increase in inventories shows a low level of demand or a rise in supply， which wi