Hu discusses oil reserve

Talks have been held between President Hu Jintao and Saudi Arabian leader King Abdullah over the possibility of building a strategic oil reserve in China fed exclusively by Saudi suppliers, AFP reported, citing a Chinese official. Discussions took place as part of Hu's visit to Saudi Arabia, which has already yielded a number of energy and defense deals. Coming just three months after King Abdullah visited China, the Chinese leader's trip is an indicator of fast-growing ties between Beijing and Riyadh. Supplies for the reserve, most likely located in a coastal city in the southeast of the country, would come in addition to the oil China already imports from Saudi Arabia, which reached about 22.18 million tons in 2005. It has not been disclosed how much oil would be stored in this emergency supply facility. Hu will go on to Morocco, Nigeria and Kenya.