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Page added on February 27, 2021

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China’s Oil Reserves Near Limit

Consumption

China’s crude oil reserves have reached a level equal to 100 days of imports, Bloomberg has reported, citing unnamed sources in the know, which is near the country’s storage capacity limits.

The amount includes both strategic and commercial inventories, the Bloomberg source said.

Data compiled by oil data analytics company OilX (that is powered by local insights from SIA Energy) shows Chinese storage at close to 1.1 billion barrels and has been growing again after a decline in December 2020, with massive imports during February 2021, OilX chief executive Florian Thaler told Oilprice.com.

OilX also noted that the Chinese SPR has been full to the brim since October 2020 at around 380 million barrels. Some of the SPR effectively had to be going into leased commercial storage, the analytics firm said.

China went on an oil-buying spree last year when international prices tanked to stock up on the vital commodity. However, as inventories built up, concern emerged that the world’s second-largest consumer of oil could run out of storage space, which would have hurt prices.

Yet the Bloomberg report also notes that Beijing had set itself a target for strategic reserves equal to 90 days of crude oil imports and it might continue buying.

“In terms of crude stockpiling, we believe China’s goal will not stop at 100 or 120 days of reserves,” analyst Mia Geng from consultancy FGE told Bloomberg. “National security is among the priorities for the coming years and this will sustain continuous stockbuilds.”

This should be good news for oil bulls as China remains the single most important factor in oil demand trends as the biggest importer of the commodity globally.

Earlier reports, however, have tempered optimism, suggesting the country might be nearing its peak demand level.

“While China’s oil use has a strong growth potential—given that China’s per capita oil use is currently around one-third of OECD levels—future growth rates will be tempered by efforts to tackle air pollution,” Michal Meidan, Director of the China Energy Programme at the Oxford Institute for Energy Studies, wrote in a comment in September 2020.

In the immediate term, buying may slow down, too, as refineries are about to start spring maintenance in April.

By Irina Slav for Oilprice.com



2 Comments on "China’s Oil Reserves Near Limit"

  1. Theedrich on Sun, 28th Feb 2021 3:12 am 

    Divest Biden the Bewildered of bombing authority! That is the current concern of Congress — and specifically of the Democrats, who know the true state of Joey’s dementia.  The few of them who are conscious realize what a danger he is to raw survival.  The majority of the Woke bribe-ocrats are too obsessed with cancel culture and anti-Whitism to understand where we are today.  The Military-Industrial Complex and the Davos psychopaths have placed them in the grip of insanity so that they no longer care about life itself.  And anyway, the Dems have always been the preëminent party of war.  It takes the masses’ minds off of political corruption.

    If for any reason China’s long-term strategy of replacing America as planetary hegemon becomes truly endangered — say, because Yankeeland tries to pull the same trick of causing oil starvation that it did to Japan in order to engineer Pearl Harbor and give the U.S. an excuse for entering WW II, we can be sure that China will have the game end differently.  It will no longer be a mere pinprick ending a few thousand military lives and allowing the land of the freebie and the home of the knave to subjugate the rest of the industrialized world.

    China is already a military equal to the U.S.  If it decides to conquer Taiwan, Biden & Co. will be helpless to do anything about it.  That has already been made clear by numerous military “games” exposing American weakness and inadequacy in the face of true power.  Plus, the American proletariat is today largely degenerate and incapable of anything but demanding narcotics, government largesse, and “equity” for subhumans and trans-whatevers.  If the brassy Pentagonians think otherwise, they will have another think coming.

    Because China is the future.

  2. Biden's hairplug on Sun, 28th Feb 2021 5:25 am 

    Even ueber-leftist Bill Maher is afraid for the consequences of the woke cancel culture:

    https://www.youtube.com/watch?v=gmXTUSP9a9M

    Afraid that it is not good for his ethnic group, in that it will only further increase US polarization and eventually Balkanization.

    He should be afraid of that.

    Theedrich: “Because China is the future.”

    Meanwhile, in East-Asia: Australia is toast

    https://parisberlinmoscow.wordpress.com/2021/02/28/chinese-company-plans-to-build-39b-city-near-australia/

    “Chinese Company Plans to Build $39B City near Australia”

    If America goes down, as it will, Australia will become Chinese in a heartbeat.

    Australia began as New Holland in the early 17th century…

    https://en.wikipedia.org/wiki/New_Holland_(Australia)

    …became a British colony in the 19th century and after WW2 a de facto American colony. China will be colonizer #4.

    China is indeed the future in Asia and the Pacific, done deal. Let’s ensure that Europeans world-wide get their act together and prevent a Chinese planetary take-over. There is absolute no room for petty nationalism, only for white nationalism.
    No MAGA, only MEGA: Make Europe Great Again, which includes those North-Americans and Australians, who can jump over their Anglo-Zionist supremacist/exceptionalist shadow and begin to call themselves Europeans, period, and act upon it. Woke diversity is dead, identity is everything.

    The future should be a multi-polar world with the Europeans and Han-Chinese constituting the carrying pillars of that new order.

    The coming years will an exercise of loss-taking for white civilization: Australia, New Zealand, East-Asia, US-East and West coast, parts of Canada, parts of the US SW and southern Texas: it will be all gone.

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