China Taps 1 Million Barrels a Day of Crude Reserves as Hormuz Closure Chokes Supply
Updated
Updated · Bloomberg · Jun 10
China Taps 1 Million Barrels a Day of Crude Reserves as Hormuz Closure Chokes Supply
3 articles · Updated · Bloomberg · Jun 10
Summary
China has begun drawing on commercial crude stockpiles, with inventory releases expected to average about 1 million barrels a day in the coming months.
The move is aimed at cushioning a supply shock after the Iran war led to a near-total closure of the Strait of Hormuz, cutting off roughly 3 million barrels a day of crude China had been receiving.
Beijing is still relying more heavily on lower refinery runs and tighter fuel export limits to manage the disruption, rather than using reserves as its main buffer.
China’s expected draw remains modest against its roughly 1.2 billion barrels of combined commercial and strategic stockpiles, underscoring the scale of its emergency cushion.