Indonesia says to become associate OPEC member at Paris meet, alongside China and Mexico

[Shotgunner51]

This is also what I said, it's oil trade makes it crucial for China to be onboard with OPEC. In coming years, reliance on GCC is dropping while China and the US are emerging are major exporters. Having atleast one of them makes OPEC relevant in the future.

Yes oil trade is naturally one key reason, be it import or export. Another reason I can think of is merchandise trade, and investment, these are also huge given China is world's largest producer-exporter of merchandise, and that both China (including HK, Taiwan) & OPEC countries (GCC in particular) have world's biggest financial reserves.

With China onboard, OPEC might be able to improvise existing global trading rules on oil.

 

[RazorMC]

Yes oil trade is naturally one key reason, be it import or export. Another reason I can think of is merchandise trade, and investment, these are also huge given China is world's largest producer-exporter of merchandise, and that both China (including HK, Taiwan) & OPEC countries (GCC in particular) have world's biggest financial reserves.

With China onboard, OPEC might be able to improvise existing global trading rules on oil.

GCC reserves are oil-based. Their economy is already faltering under low oil-prices and demand looks to go down further.

In this regard, China's purchases and OPEC association is critical at this point.

 

[Shotgunner51]

GCC reserves are oil-based. Their economy is already faltering under low oil-prices and demand looks to go down further.

In this regard, China's purchases and OPEC association is critical at this point.

That's true. Looking forward, maybe a merchandise-backed RMB can be more widely used in oil trade, and OPEC countries would reinvest on changing economic structure so that integrate deeper with China's industrial supply chain (and market).