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Official rules out oil crises in China
By Guo Nei (China Daily)
Updated: 2005-08-22 06:01

A price supervision official with Li's commission told China Daily that the central government has already worked side by side with local market watchdogs to stop oil price hikes in black markets.

Since last Wednesday, the China Petrochemical Corporation (Sinopec) and the China National Petroleum Corporation (CNPC), China's two oil giants, have delivered 80,000 to 90,000 tons of oil products daily to Guangdong. Li said the amount has exceeded the regular consumption level in the province.

Li also said since the beginning of this year China's oil products market has been stable in general and the demand for oil products can be met.

CNPC supply increase

CNPC, China's largest oil and gas producer, has reported rapid development of its crude oil production in recent years.

The corporation produced 65.45 million tons of crude oil in the first six months of this year, a 3.9 per cent year-on-year increase.

In view of soaring domestic oil demand, CNPC adjusted its strategy this year for guaranteeing the stable output at old oil fields in eastern China, while making rapid developments in terms of exploitation and production in newly developed oil fields in western China.

CNPC's newly discovered and exploited oil fields in western China have become a substitute for old ones.

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