Singapore: China began filling its third government-owned strategic crude oil reserve last month, two industry sources say, as Beijing takes advantage of diving crude oil prices to build up an emergency supply buffer for the future, Reuters reported.
About 7.3 million barrels of crude, more than half of them from Saudi Arabia, were pumped into the storage tanks at the Huangdao base, in Qingdao city on the east coast, adding to reserves built up last year at China's first two reserve bases, sources who monitor shipments in China told Reuters.
"More oil will be pumped into the storage tanks in December and January," said one industry source, who is familiar with tanker movements and port operations along China's coast.
"At least two VLCC (very large crude carrier) tankers loaded with Saudi Arabian oil were discharged in early November for the strategic tanks," said another source who declined to be named due to the sensitivity of the issue. Two VLCCs would carry about 4 million barrels of crude. [10/12/08]
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