China To Use Oil Reserves To Smooth Prices -Sinochem VP

China plans to use its national petroleum reserve, now under construction, to blunt the country’s exposure to market volatility, Han Gensheng, vice president of Sinochem Corp., said Wednesday.

The reserves “will be used to cope with short-term fluctuations and maintain stability in the market,” Gensheng said on the sidelines of a U.S.-China conference in New Orleans.

The comments indicate the world’s No. 2 oil consumer plans a much more active role for its reserves than those held by the U.S. and Europe, which by policy use them only in the event of severe supply disruptions and not to affect prices.
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