China managed to save a significant amount of money on regular payments amid the pandemic. On this occasion, Chinese crude oil importers filled their stockpiles up to the full, while the market saw oil prices plunge. Now, when the quotes hit new all-time highs, the country is less interested in oil.
China was the first country to rebound from the coronavirus crisis. It started to buy cheap oil right away. As of today, its oil reserves have reached a level equal to 100 days of imports and once even rose as high as 120 days. Simply put, storage tanks of the world’s largest oil importer are full to the brim. Nevertheless, it is highly unlikely to prevent China from purchasing even more cheap oil. Currently, local authorities are actively engaged in construction of facilities to hold extra supplies.
Analysts reckon that China will continue to expand its dominance in the global oil market even despite running out of storage space. According to the General Administration of Customs, oil shipments grew by 7.3%, or 10.85 million barrels per day, last year. On top of that, China’s natural gas imports increased by 5.3% in 2020. This means that sufficient level of reserves is critical for Beijing’s economic resilience, especially at times when its foreign policy is in a state of turmoil.
