Asia should build oil reserve: EIA

Asia should build oil reserve: EIA

Dow Jones, Singapore

With petroleum demand in developing nations, particularly in
Asia, outstripping the rest of the world, building oil stocks for
energy security will become more of a priority, according to a
senior economist with International Energy Agency.

"As Asia grows more import dependent, its susceptibility to
supply disruptions of any kind will create more of an incentive
to build operating and strategic stocks," Klaus Rehaag, editor of
the monthly IEA Oil Market Report, said Monday.

A few Southeast Asian countries, including the Philippines and
Thailand, recently have indicated plans to create or boost oil
reserves.

Thailand's government said last month that it planned to raise
its petroleum inventory by increasing refinery output and
slashing exports.

This decision was made due to concerns of supply disruptions
following the Sept. 11 attacks in New York and Washington.

The Thai government ordered refiners to raise oil products and
crude reserves from 3 percent to 5 percent of annual consumption.

The Philippine Energy Secretary said at a recent energy
conference in Buenos Aires that his government is considering
taking advantage of a six-week slide in crude prices to create an
oil stockpile.

Rehaag said as regional oil reserves, including those in
Indonesia and Malaysia, dry up, Asia will become more and more
dependent on imported crudes from the Middle East.