China's Oil Buffer Is Being Put to the Test as Beijing Draws Down Stockpiles During Hormuz Crisis
Beijing cut imports and fuel exports as its 1.4 billion-barrel stockpile helped blunt price spikes during the Hormuz disruption, analysts said.
- China's massive strategic oil reserves of nearly 1.4 billion barrels have provided a critical buffer as global supplies face severe disruptions from the Strait of Hormuz crisis amid the US-Israel war on Iran.
- Motivated by fears of naval blockades, Beijing's energy security strategy allowed China to slash oil purchases by 23% in the early months of the conflict with Iran, significantly reducing immediate import reliance.
- Electric vehicles now make up around 14% of passenger cars in China, reducing daily oil demand by 1.5 million barrels, while the country added an estimated 1.1 million barrels a day to strategic inventories during 2025.
- On Wednesday, Chinese Foreign Minister Wang Yi met with Iranian counterpart Abbas Araghchi in Beijing, urging all parties to reopen the Strait of Hormuz to safeguard international energy supplies.
- Beijing must now replenish depleted stockpiles while managing diplomatic pressure to stabilize global oil markets, with crude prices hovering around $103 a barrel amid competing demand for constrained supplies.
13 Articles
13 Articles
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China's Oil Buffer Is Being Put to the Test as Beijing Draws Down Stockpiles During Hormuz Crisis
China has amassed an estimated 1.4 billion barrels of crude, allowing Beijing to draw on reserves, reduce imports and avoid joining Western emergency oil releases during the Hormuz crisis.
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