Turmoil in Iraq 'certain to affect China oil prices'
Updated: 2014-06-17 07:16
By DU JUAN (China Daily)
|
||||||||
|
A weapon is checked in the southern Shiite Muslim shrine city of Najaf on Sunday as Iraqis volunteer to fight alongside the security forces against jihadist militants who have taken over several northern cities. [Photo/China Daily] |
The security crisis in Iraq will affect oil prices in China and change the mix of the country's overseas oil supply sources in the long run, energy industry experts say.
|
|
Iraq is China's fifth-largest crude oil supplier.
Lin Boqiang, director of the China Center for Energy Economic Research at Xiamen University, said on Monday it is almost certain that the situation in Iraq will drive up oil prices in China.
Iraq is the second-largest producer in the Organization of the Petroleum Exporting Countries, after Saudi Arabia.
China depends on the world market for nearly 60 percent of its annual petroleum use.
Lin said the changing picture of Iraqi politics will also affect Chinese oil companies' investment strategies in the Middle East.
Li Li, research and strategy director at ICIS C1 Energy, an energy information consultancy in Shanghai, said China may increase imports from other oil producers such as Russia, Iran and Oman if the Iraqi crisis lingers.
However, Li said the security crisis is unlikely to drastically affect China's supply.
China National Petroleum Corp, the country's largest oil producer, is operating four projects in Iraq, making the company the largest foreign investor there.
- Delta launches nonstop Seattle-Hong Kong flight
- Consul general welcomed
- Developer of Alibaba film in talks for US TV screening
- Opera explores death of a Chinese-American soldier
- Popular Chinese TV show expands auditions to US
- World Cup fever grips Chinese soccer fans
- Tender moments of world leaders with their children
- Chinese fleet joins others for RIMPAC exercise
Most Viewed
Editor's Picks
Crackdown on terrorist attacks |
My China Story: Meeting the master |
Tongues tied around tatu-bola |
A market that's not such a hot property |
Tough regime cranks out test winners |
Some lab animals get reprieve from testing |
Today's Top News
US should 'attune itself to China's rise'
China blasts comments on S China Sea controversy
US hay helping China's dairy needs
Straits ties to expand despite pact suspension
US should 'attune itself to China's rise'
US hay helping China's dairy needs
Chinese TV show expands to US
Former US congressman: Diaoyu belongs to China
US Weekly
Geared to go |
The place to be |