Middle East oil producers have focused on expanding in Asia, crude oil stocks

* Iran will push forward the strategic reserve plan in China

Asian buyers hungry for oil demand, the Middle East oil producing countries in Asia, therefore plans to increase crude oil stocks, to consolidate its market position.

Europe and the United States in the past has always been a center of oil demand, however, after raging in the global financial crisis, demand has been sluggish, the Middle East oil producing countries in Asia and Russia was forced to seize the market.

Russia to increase oil supply to Asia may prompt Middle East oil producing countries in Asia to accelerate expansion of its stock plan. Russia, through its coast from East Siberia to the Pacific (ESPO) oil pipeline, the supply of inexpensive oil, much to replace the Middle East oil producing countries in China, India, Korea and Taiwan and other major Asian oil consumer market trend.

"ESPO oil supply is still low, in the near future also will not pose a threat, however once the ESPO to increase the supply of Middle East oil producing countries may have to defend the battle for market share," Energy Security Analysis analyst Vivek Mathur said.

Last year in December, Saudi Arabia Oil Minister Naimi said Saudi Arabia has accepted a proposal, proposed building a "few hundred million barrels" of crude oil inventories, which highlights the needs of China and Asia as the center of the growing importance. The plan is still discussion.

Asia Pacific Energy Consulting (APEC) director Al Troner said, "Saudi Arabia needs of the market you want to diversify the country, this is another way to enter the Chinese market."

"Japan will serve as a springboard... Can use smaller tankers, small coastal areas of China to provide crude oil refineries."

The inventory will help the East from Saudi Arabia transport large shipments of 200 million barrels dispersed, then they are delivered to the hands of the smaller coastal refineries.

PFC Energy David Kirsch director of market intelligence services, "said Saudi Arabia has been considered important in their markets crude oil storage, in the event of any supply disruption, they can be shipped to Japan or China these stocks."

In East Asia to seize the market, behind Saudi Arabia in Abu Dhabi. Abu Dhabi National Oil Company early last year, had a depot in southern Japan to store crude oil. This is just the company's agreement with Japan in the world's third largest oil consumer, the beginning of the establishment of reserves.

South Korea also include France's Total (TOTF. PA: Quote), including several foreign oil companies reached a similar agreement.

** ** Targeting Southeast Asia and China

Industry sources say that, in addition to North Asia, the Middle East oil producing countries are also studying the storage of crude oil in South and Southeast Asia possible.

Qatar intends to visit the sea 45 minutes away from Singapore, a small Indonesian island to store crude oil.

According to sources, Singapore is building underground storage facilities have attracted oil-producing countries including Saudi Arabia and other Middle interest. Saudi Arabia is considering storing crude oil in China.

The world's fifth largest oil exporter Iran, with China in 2007 signed a Memorandum of Understanding, discussed the establishment of strategic reserves of crude oil in China, the possibility of the library. Iran's government is committed to advancing this year.

A National Iranian Oil Company (NIOC) officials said, "This is us (this year) one of the important goals - we want to start this project."

India also discussed with the Middle East oil producing countries to jointly build oil reserve facilities to enhance energy security.

Russia's current ESPO oil destined for Asia is about 30 million barrels a day, and plans before the end of this year to 60 million barrels a day. Although exports relative to the Gulf region is not large, but the Russian crude oil directly into the rare consumer demand is still growing center, thus threatening the Middle East producing countries, market share.

"It is aimed at Asian demand, which explains why the Middle East producing countries of the Eastern market, more and more attention." Energy Security Analysis analyst Vivek Mathur said.
hailukong Reviewed by hailukong on . Middle East oil producing countries to seize China shot up against Russia Middle East oil producers have focused on expanding in Asia, crude oil stocks * Iran will push forward the strategic reserve plan in China Asian buyers hungry for oil demand, the Middle East oil producing countries in Asia, therefore plans to increase crude oil stocks, to consolidate its market position. Europe and the United States in the past has always been a center of oil demand, however, after raging in the global financial crisis, demand has been sluggish, the Middle East oil Rating: 5