The Gulf Cooperation Council (GCC) capabilities in steadily supplying China with oil has reflected positively on their relations, an economic report said Sunday.
China is an unprecedented consumer of oil from Gulf states, as Chinese demand is expected to increase over the upcoming years through a contract agreed by Kuwait Petroleum Corporation (KPC) and China Petroleum and Chemical Corporation (Sinopec), Kuwait China Investment Company (KCIC) noted in its report.
The KPC-Sinopec contract, signed in mid-August, aims to double the daily export volume to China to 300,000 oil barrels daily over the forthcoming years, KCIC said, adding that Kuwait will export 10 percent of its oil production to China as exports might increase to between 500,000 and 800,000 in three years time.
The report also indicated that Saudi Arabia is at the forefront of oil exporting countries to China as it exports around 1.2 million barrels a day, equaling 20 percent of China's total oil imports.
Qatar's share of oil exports has also increased, from 5.5 percent to 6.6 percent of the GCC's total exports to China, while the United Arab Emirates' share remains modest, KCIC added.
KCIC further expects that Saudi Arabia's exports to China might decrease later in the year, in favor of other oil-producing countries such as Iraq, Kazakhstan, and Russia, which might provide better terms.
China's strategy is based on diversifying its base of oil suppliers, mentioned the report, adding that Gulf States supplies one-third of China's oil needs.