OPEC Tries to Compete with Russia Over China’s Oil Needs

Oil prices have tripled since 2001 as the Chinese economy has expanded at more than 9 percent a year, straining global supply. Russia, China’s largest non-OPEC supplier, is studying a proposal to build a pipeline to feed Siberian oil to China and plans to raise rail shipments 50 percent next year. OPEC, whose members produce 40 percent of the world’s oil, is pumping at the fastest pace for 25 years to keep up with demand.

“China is the elephant in the room and by far the fastest-growing energy consumer,” said Gal Luft, co-director of the Institute for Analysis of Global Security in Washington.

“This makes it an important client for OPEC. For political and market reasons, OPEC would like to strengthen relations with China.”
International Herald Tribune