As a rule, a country, which does not take part in a conflict, will surely be among the winners. Thus, while the largest oil producers are combating for supremacy, China is benefiting from low prices.
In 2020, China’s refinery output advanced by 3.2% to 13.45 million barrels a day. Notably, the previous year was challenging for every country. Nevertheless, China’s import of crude oil rose by 7.3% on a yearly basis to a record 10.82 million barrels a day. What is more, the country’s authorities managed to curb the virus spread. That is why oil consumption will grow mainly because of the rapid economic recovery.
The country increased crude import quotas for non-state companies so that they could benefit from low prices. The companies immediately began purchasing crude oil. As a result, China’s reserves reached 63 million tons of extremely cheap oil. Thus, China may even win the price war in the oil market.
At present, exporters agreed to cut oil production, thus keeping prices at the same levels. Some analysts suppose that Brent crude may jump to $60 a barrel in the near future. However, China hopes that the oil war, as well as the period of low prices, will continue.
