China May Need to Rebuild Its Oil Stockpiles, Says Vitol

  • ‘Some restocking will be required,’ says Vitol’s head of Asia
  • Traders’ positioning is ‘nowhere near where you’d expect it’

Am oil reserve complex in Zhoushan, Jiangsu province, China. 

Photographer: QIlai Shen/Bloomberg

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Oil prices, already up around 20% this year, could be boosted by China potentially replenishing its inventories and financial investors increasing their long positions, according to Vitol Group.

The world’s biggest independent oil trader said there’s a chance China looks to build up stockpiles following the Lunar New Year holiday.