China’s oil reserves to be boosted amid global crude price rout

Regardless of the current oil market situation, China will not curb its efforts to secure stable and reliable oil supply, including continuing to increase domestic production, as energy security remains one of the government’s top economic policy priorities in the trade war era, said Wang Yongzhong.

China may buy additional oil at cheaper prices for its strategic stockpile, but those purchases may be limited, Wang indicated.

“It is a good opportunity. China’s reserves are far below the 90-day usage amount, the standard in the United States. It has room to increase,” Wang added.

“However you may not be able to buy a larger amount at the current price, even if you want to buy more. It will depend on the cost and market conditions.”

China imported more than 70 per cent of its crude oil requirements in 2019, with foreign purchases rising to a record 506 million metric tonnes (3.7 billion barrels), equivalent to 10.1 million barrels per day. It marked the 17th straight year that China’s oil imports had increased, with more than a third coming from the Middle East.