'Saved the day': How China helped keep the lid on oil price surge as Iran war disrupted supplies
China's crude stockpiling and subsequent pullback on purchases since the war erupted in late February has helped the world avoid a deeper energy crisis.
TL;DR
- China's large crude oil stockpiles and reduced purchases after the Middle East war helped prevent a deeper global energy crisis.
- Analysts had forecast oil prices soaring to $150-$200 a barrel, but China's actions kept prices more manageable.
- China holds an estimated 1.4 billion barrels of strategic crude oil inventories.
- China's crude imports dropped significantly in May and June but showed a rebound in July and August.
- Beijing's strategy involved building redundancy through stockpiling and clean energy investments.
- Coal also played a role as a shock absorber, allowing China to substitute away from oil when prices spiked.
- Experts predict the Gulf standoff may last a year, with oil prices potentially remaining between $85 and $100 a barrel through 2027.