China Plans to Set Up State Oil Product Reserves In 2012

China plans to set up its first state reserves for refined oil products this year, a person familiar with the situation told Dow Jones Newswires Wednesday.

The move indicates Beijing's growing sense of urgency to secure crucial energy supply for an expanding economy and will likely give a fresh boost to global oil prices.

The reserves of refined oil products such as gasoline and diesel will be in addition to China's existing crude-oil reserves, which were set up in 2006.

The country's apparent consumption of refined oil products in the January-November period was 222.15 million metric tons, up 5%.

China is also planning to establish fertilizer reserves, the person, who didn't wish to be named, said.

(enercast.com, Edited by Topco)