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Oil Bulls Beware Because China’s Almost Done Amassing Crude

  • Country’s strategic oil reserves seen close to full: JPMorgan
  • China crude imports could fall by about 15% if reserves fill
Updated on

One of the pillars of oil’s recovery from the lowest price in 12 years may be on the verge of crumbling.

China is likely close to filling its strategic petroleum reserves after doubling purchases for it this year as prices plunged, JPMorgan Chase & Co. analysts including Ying Wang wrote in a June 29 research note. Stopping shipments for the reserve would wipe out about 15 percent of the country’s imports, according to the bank.