You're watching...
Breitling Oil & Gas CEO Chris Faulkner explains the serious political and economical ramifications if China continues to stockpile its oil reserve...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Is trading higher for the fifth straight session and it could keep climbing.
In the other in the future China continues to aggressively add to its reserves Chris Faulkner CEO violent oil and gas -- that China's stockpiling of wells -- have serious political and economic ramifications here in the united -- joins me now.
So let me say that why is this is a concern for your -- on the fact that the stockpiling will -- that we -- -- -- -- -- -- Well -- mean they they they should have in the energy security is important China's important every country on the world however they have about a hundred million barrels of oil stockpile currently.
They're trying to get to seven or 800 million to they have a ways to go there aggressively put a target of -- warning on that additional 700 million barrels so what we're seeing right now.
It's -- and demand in the marketplace China obviously it's a big demand user of oil they're gonna surpassed US play next year as the number one consumer of oil.
On top of the factor gonna continue stockpile.
They've got four stockpiling facility arrest today button but they still have a long way to go before that's actually fill that senate that -- we'll.
Continue for -- -- they're actually that that's just the first phase of their star power for sort address PR they actually have strays too and -- three still yet to be built so what they've done now as a symbol.
First this -- ten days worth of moral for a minute not million barrels today.
They've got ten days we're the usage wanna go to ninety days some got a long ways to go to their continue to aggressively stockpile -- -- Saying that this is pan -- demand that that the -- that we have seen in crude.
Over the last summer months -- isn't true demand at all which would make sense considering that they cut economic situation in the US and Europe is -- us.
Zero biggest masking the true demand that China is seeing what we're seeing in China right now is is Colby -- stockpiled meaning that they're -- your call is going down electricity usage is gone down to the oil usage has gone down.
On true demand but in the overall demand because the Fed on demand -- Poland and the stockpile has created this a sawed.
That China's actually use -- than they actually are now hopefully the economy will rebound China's GDP dubious seven or 8% and a soft landing.
No back to big demand -- on top of the stockpile and but that will create an additional demand in the marketplace who are not accustomed to seeing.
Are you worried that this situation is -- it because of political headache for either the president or for Mitt Romney has amuses him a platform initiative thank.
Well I think we're coming up on November pretty quickly I think that you know gasoline prices right now coming off of this summer going to winner bled to stick to have more what was called the stuff the half month if you will the month between -- the transferred a winner blends of gas -- -- started coming down it's not.
You see an oiled they had 97 dollars so our I think you've also got -- and here's a little bit of fear from QE3.
But Casey got that fear factors Q3 gonna happen in the dollar -- now you've got that rolled into the price of oil in the speculation there's a record afford our gasoline in November.
I think the president's got a big issue Chris Faulkner thank you very much front -- gas is good to see here that Cheryl.
