China has surpassed the United States, long the top importer of Saudi oil, in short-term average daily imports from the petroleum-rich Gulf kingdom, US Secretary of Energy Steven Chu said Wednesday in Abu Dhabi.
"It's correct, as far as I know," said Chu, when asked if China has recently moved ahead of the US in terms of average barrels-per-day oil imports from Saudi Arabia.
He did not provide specific figures.
As Chinese demand will likely continue rising and the US is trying to cut back its consumption of oil, especially from foreign sources, China might continue to be the main importer of Saudi crude.
"In the long run, one fully expects China's demand for oil to be increasing," Chu told a press conference, adding that, "we're moderating our demand for oil in general, and we would like to decrease our demand for imported oil."
However, he said he thinks the close US-Saudi relationship, which dates back to the 1940s, will continue.
"I think we will have a continuing relationship with Saudi Arabia," Chu said, noting that it is "the second-largest oil producer in the world" and "is important as a supplier to the world."
Chu said he sees the relationship between the US and the Middle East expanding from its current focus on oil and gas.
"What I see is an enriching and diversification of mutual, common interests of the United States and the Middle East," he said.
The US and countries in the region can "work together on" projects such as alternative fuels and increasing energy efficiency, he added.
Chu also discussed oil production capacity and fluctuations in oil prices.
"Right now, because of the recession, there is excess capacity" for oil production, Chu said. He declinced to comment on whether the market was currently over- or under-supplied.
Chu emphasized the importance of stable oil prices, saying that, "a price that goes up and down very rapidly is not good for the producers or good for the users."
"We want the things that affect (oil prices) to be as open and transparent as possible and we want the price to be as stable as possible," he added.
Speaking in Riyadh on Monday, Chu said that "the volatility of the (oil) price seems to be far in excess of demand and supply."
He pointed the finger at oil investments by speculators and hedge funds that are not end-users.
"We are going to be (undertaking) studies to try and find out how much has the volatility been increased by large financial institutions taking positions," he said.
Chu was set to travel from the United Arab Emirates to Qatar on Wednesday.
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