Meeting in Japan this week, OPEC ministers have signalled there is little enthusiasm for an expansion in production. "Kuwait says no more oil," said acting Kuwaiti Oil Minister Sheikh Ahmad al-Fahad al-Sabah. The Venezuelan Oil Minister concurred - "so far I have not seen a position in favour of an increase."

Amid mounting concerns about stability in the Middle East, China is accelerating plans to establish a strategic oil stockpile. China's ruling council is expected soon to announce plans for a national stockpile of 8 million cubic metres of oil by 2005, though the International Energy Agency argues China should stockpile about 24 million cubic metres.

Over recent years, China has become increasingly dependent on foreign supplies of oil to power its growing economy. Currently, foreign oil accounts for one-third of China's needs with predictions this could go as high as 50 per cent by 2050.

The volatile Middle East already accounts for about 56 per cent of those crude oil imports, mostly Iran.