China Begins Tapping Oil Stockpiles as Middle East Crisis Drags On

AI Summary

China began releasing oil from its strategic reserves in May due to ongoing Middle East tensions which have disrupted about 10% of global supply, signaling cautious market response to sustained crude supply issues.

China began tapping its huge oil reserves in May, three months after the Middle East conflict wiped out about a tenth of global supply, in a sign that Beijing is still refraining from paying top-dollar for prompt crude deliveries. Over the next few months, China is expected to draw an average of about 1 million barrels per day (bpd) from its massive oil stockpiles, according to estimates by energy consultants and energy flow-tracking firms Energy Aspects, Kpler, and Vortexa cited by Bloomberg. China is the world’s top crude importer, but…