U.S., China Race for Mideast Oil

As Asian demand for oil has increased, Middle Eastern reliance on American oil consumption has fallen. Consequently, U.S. influence within the Middle East, Saudi Arabia in particular, is eroding. If these trends continue, America will reach the point where it needs Middle Eastern oil more than the Middle East needs U.S. money.

Perhaps nothing illustrates the growing tensions over oil between China and America better than the less-than-open-armed reception Chinese President Hu Jintao was given on his April visit to Washington. In contrast, President Hu’s visits the same month to Saudi Arabia (China’s second-largest supplier of crude oil) and Nigeria (the top African oil producer) underscored China’s increasing demand for oil and its growing relationships with oil-exporting countries. Also, Saudi Arabia’s tense attitude toward the United States was clear.
Why the huge contrast between how China was received by the U.S. and the warm receptions Saudi Arabia and Nigeria gave? The answer is largely that China’s rapid growth has put it in direct competition with the U.S. for many resources—including oil. Additionally, many Middle East oil producing countries are dominated by Muslim populations that increasingly see the U.S. as the enemy, and who thus seek allies elsewhere. China, which desperately needs oil and conveniently is a UN Security Council veto holder, makes an ideal partner for these nations.

As these types of relationships develop, America will probably continue to lose influence in the oil-rich Middle East and resource-rich Africa.

What does this mean for Americans? It means that as China continues to secure oil supplies, oil prices will probably keep going up.

The Trumpet