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Before Iran War, China Amassed World's Largest Oil Stockpile

Ahead of the war in Iran, China aggressively added to its oil reserves, more than any other country, according to the United States government data released this week.

"Prior to the Iran conflict, preliminary government data indicate that China has continued building inventories in 2026," the article stated.

The New York Times reported earlier in the month that China imported 15.8 per cent more oil in January and February compared to the same period last year.

"Oil stockpiling has been taking place for a while now, and Chinese regulators were already preparing for geopolitical tensions to arise from the Trump administration," Cosimo Ries, an energy analyst at Trivium China told the publication.

According to the US Energy Information Administration, China had nearly 1.4 billion barrels of oil put aside compared to 1.2 billion barrels among 32 members of the International Energy Agency (IEA). Of these, the US has 413 million barrels.

Moreover, the US has been drawing out its stockpile. It is left with 405 million barrels after selling 8 million barrels in April. US President Donald Trump has authorised the release of 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) to combat high energy prices and supply disruptions caused by the conflict with Iran.

Why China Is Stockpiling

The Oxford Institute for Energy Studies said that China is stockpiling due to three factors. First, crude prices remain subdued as global demand continues to soften. Second, risks are intensifying due to potential supply chain disruptions and strict sanctions on major exporters like Russia, Iran, and Venezuela. Third, a new domestic energy mandate now requires companies to increase their strategic reserves to ensure long-term security.

China is very dependent on global oil because it is the world's largest crude oil importer, but it has filled its coffers in a "pretty wise" and "strategic step", as Ries said.

Due to the Iran war, the traffic through the Strait of Hormuz, through which one-fifth of the world's oil supply flows, has been disrupted.

Iran vowed it would not reopen the Strait of Hormuz as long as the United States continues to blockade its ports.



from NDTV News- Special https://ift.tt/C96SZF2
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