Archive · 20 Sep 2026
China’s Oil Stockpile Helps Contain Global Price Shock
China keeps a very large supply of oil in storage.
During the conflict, oil shipments through an important sea route were disrupted.
China used some of its stored oil instead of buying as much new oil.
Its imports fell by 32 percent.
Because China bought less, other countries faced less competition for available oil.
This helped prevent prices from rising even more.
However, oil prices were still much higher than last year.
Prices could rise further if fighting damages energy facilities or shipping routes.
China cut oil imports by 32% during the conflict, reducing competition for crude.
The country had an estimated 1.4 billion barrels in strategic reserves by the end of last year.
China used stored oil as fighting disrupted supplies and effectively closed the Strait of Hormuz.
Analysts said China’s stockpiling and lower oil demand helped limit the global price shock.
Oil markets remain vulnerable, with prices potentially reaching $150 if infrastructure damage worsens.
- Who
- China, with impacts on global oil buyers and sellers.
- What
- China reduced oil imports by 32% and relied on strategic reserves during a conflict-related supply disruption.
- When
- During the conflict; China’s reserves were estimated at about 1.4 billion barrels by the end of last year, and prices briefly reached $126 in late April.
- Where
- The disruption centered on the Strait of Hormuz and Middle Eastern energy routes, affecting global oil markets.
- Why
- China used stored oil to reduce dependence on fresh imports, easing competition for crude while shipping routes were disrupted.
- Chinese import reduction
- Oil imports fell by 32% during the conflict.
- Estimated strategic reserve
- About 1.4 billion barrels by the end of last year.
- China’s role in Iranian oil trade
- China is Iran’s top oil buyer.
- Recent Brent price level
- Brent crude was hovering around $100 a barrel, compared with an average of about $69 last year.
- Recent price peak
- Oil prices briefly reached $126 a barrel in late April.
- Potential worst-case price
- Bank of America analysts said prices could reach $150 a barrel if major energy infrastructure is damaged.