China reduces oil reserves to tackle Strait issue

China has begun relying on part of its commercial crude oil inventories to ensure the stability of its supplies amidst rising tensions in the Gulf region and declining oil flows through the Strait of Hormuz. It is expected that Beijing will draw around one million barrels per day in the coming months to compensate for the shortfall resulting from the crisis, while Chinese refineries continue to reduce production and restrict fuel exports. China possesses massive reserves amounting to about 1.2 billion barrels, giving it flexibility to withstand market disruptions and reduce the impact on global oil prices.

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