A spokesman for China’s State Administration of Grain and Food and Stockpiling said on the 18th, “We are working toward the release of oil reserves.” He declined to comment on whether it was related to the release request to the US oil consuming countries.
“Details will be announced on the website,” the spokesman told Reuters.
China is the world’s largest oil importer. The strategic petroleum reserve was released for the first time in September to stabilize energy prices. Approximately 7.38 million barrels were sold to some domestic refineries through open bidding.
“China has its own plans for the release of strategic oil reserves. The second release will be as large as the first,” said an analyst at SIA Energy (Beijing).
However, he pointed out that the scale is small and does not affect the stockpile of China or the cost of refineries.
China has not disclosed its strategic oil reserves. The last announcement was in 2019, which was 80 days of demand including national stockpiling, oil companies and commercial tank inventories.
Energy Aspects estimates that it holds about 220 million barrels of crude oil, the equivalent of 15 days.
William Douglas has worked as financial analyst until his retirement. He is a well-known research director and portfolio manager for more than 5 years. After many years in the market, he dedicated all his time to write articles highlighting different financial problems and world news. He also cover news from all over the world.