Olive Branch Optimism
what a wonderful world...
Tuesday, January 24, 2006
Saudi oil sales to China & India look set to rise.
The Saudi king today became the first OPEC leader, and first Saudi leader ever to travel to Beijing. Last year Saudi oil sales to Beijing rocketed 59% higher than in previous years and with growing Chinese demand for oil are set to continue to rise.

China has been agressively seeking oil-contracts to feed its ever-increasing energy demand, a situation which could cause further strain on US-Chinese relations as the competition for access to Mid Eastern oil increases dramatically.

China is the #2 oil consumer in the world after the USA, but have much more substantial economic growth and a strong budget surplus in recent years. With US debt increasing and the US government having to "tighten the belt" on expenditure it looks like China will soon be the #1 consumer of oil, and India is quickly on its way to overtaking the USA for position #2.

Any lull in availability of oil could cause these two economic powerhouses to sign oil-deals at prices most nations would consider outrageous; in order to gaurantee sustainable amounts of energy for their massive populations and growing economies.

here's an article: Saudi king to sign on China oil deal

[olivebranch out]
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