WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Strong Short Sellers Dominate Crude Markets

Strong Short Sellers Dominate Crude Markets

As next week’s OPEC meeting…

Smart Money Backing A Marijuana Boom In 2017

Smart Money Backing A Marijuana Boom In 2017

Canada’s marijuana stocks continue to…

President Duterte: China Threatened War If We Drill For Oil In South China Sea

Oil Rigs

China’s President Xi Jinping had warned Philippine President Rodrigo Duterte that the Chinese would go to war if the Philippines were to drill for oil in a disputed area in the South China Sea, Duterte said in a speech on Friday.

According to Reuters, Duterte shared in the speech some of the details of his discussion with Xi on the South China Sea issue earlier this week. Duterte is known for his sometimes-provocative remarks, which his office usually retracts later and blames media for spinning some of his words.

The so-called South China Sea dispute between China, the Philippines, Vietnam, Taiwan, Malaysia and even tiny Brunei, has been going on for a long time.

In July last year, The Hague-based Permanent Court of Arbitration ruled against China and in favor of the Philippines in an arbitration case.

“Having found that certain areas are within the exclusive economic zone of the Philippines, the Tribunal found that China had violated the Philippines’ sovereign rights in its exclusive economic zone by interfering with Philippine fishing and petroleum exploration,” among other things, the court’s ruling read.

China immediately rejected the ruling and said its army would defend what it deems to be its legitimate territorial claims to a basin that is not just rich in oil and gas, but is also a major waterway connecting Asia, Europe, and the Middle East.

Today, referring to this week’s meeting with Xi and Manila’s possible attempt to enforce the ruling and drill for oil, Duterte said, as quoted by Reuters:

“His response to me, ‘we’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war.”

According to Duterte, China’s Xi had said that the parties would discuss the arbitration ruling some time in the future, but not now.

Last month, China National Offshore Oil Corp tendered 22 oil and gas blocks in the South China Sea, expecting bids from foreign companies that would help it develop the reserves in response to growing local oil and gas demand.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on May 20 2017 said:
    SEATO is all for one and one for all. An ocean trading nation cannot succeed by attacking its customers and ending all trade.
  • Naomi on May 20 2017 said:
    Declare war on the customers who employ half your population. Sounds like a Chinese fire drill.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News