China to meet ‘severe’ commodity price volatility by boosting coal supply, oil and gas exploration
- China to focus on increasing coal, oil and gas supply, while strengthening reserves and maintaining stable imports, says economic planner
- The coronavirus pandemic, shifting monetary policies of major economies and geopolitical conflict are stoking volatility in commodity prices
China’s top economic planning agency said on Monday it would steady energy supply this year in the face of escalating geopolitical conflicts, such as the Russian invasion of Ukraine that has roiled global oil and gas markets.
Global benchmark Brent crude oil jumped as much as 18 per cent to near US$140 per barrel on Monday morning after it surged by 21 per cent last week.
Lian Weiliang, a vice-director of the National Development and Reform Commission (NDRC), said high commodity prices would make imports more costly and there were challenges ahead to steady China’s energy supply.
It poses a new challenge to ensure domestic supply and price stability
“Since the beginning of this year, under the combined influence of multiple factors such as the Covid-19 pandemic, the monetary policy shift of major economies, and especially the escalation of geopolitical conflicts, the international commodity price situation has become more severe, complex and uncertain,” Lian said at a briefing on the sidelines of China’s annual parliamentary meeting in Beijing on Monday.