China purchasing oil at low prices to refill strategic reserves

Energy Aspects Ltd. has announced that Chinese refiners are expected to purchase around 16 million barrels of oil per month to replenish the nation’s Strategic Petroleum Reserve (SPR) while prices remain low.

This estimate is based on recent consultations with major Chinese energy companies, although specific start dates for these purchases were not disclosed. The volume represents roughly 5 per cent of China’s monthly oil imports, Caliber.Az reports, citing foreign media.

Details about China’s oil and fuel reserves are typically kept confidential, with Beijing often capitalizing on price declines to refill them. State-owned oil companies are usually tasked with this replenishment, and their purchases can be intertwined with those for their own refineries. This quarter, Brent crude prices have sharply declined due to weaker demand forecasts in major importing countries such as China and the US.

Since late June, the global benchmark has fallen nearly 20 per cent and dropped around 10 per cent just last week. In July, Vortexa Ltd. reported that China aimed to add about 8 million tons (approximately 59 million barrels) of crude to the SPR by March 2025.