Oil Price Drop Presents Crude Oil Stockpiling Opportunity for China

[Asia Economy Beijing=Special Correspondent Park Sun-mi] It has been suggested that China could increase its crude oil reserves by taking advantage of the sharp drop in oil prices.

According to the South China Morning Post (SCMP) in Hong Kong on the 11th, Wang Yongzhong, Head of Global Energy Research at the Chinese Academy of Social Sciences, stated that China will try to purchase more crude oil during the period of falling oil prices to increase its crude oil reserves.

He explained, "Regardless of the current situation in the oil market, China will not cease its efforts to secure a stable supply of crude oil," adding, "During the trade war period, energy security is one of the priorities of China's economic policy."

He also added, "(The drop in oil prices) is a good opportunity for China. China's crude oil reserves fall significantly short of the 90 days of consumption standard used by the United States. There is room to increase them."

However, he noted that even if oil prices fall, China may not be able to purchase as much crude oil as it desires. Even if China wants to buy more crude oil, variables such as costs and market conditions come into play.

As of last year, China met more than 70% of its crude oil demand through imports. China's crude oil imports averaged 10.1 million barrels per day, with Middle Eastern oil accounting for one-third of the imports.

This content was produced with the assistance of AI translation services.