Commodities
China’s Oil Hoard Shields Refiners From Iran Risks for Now
Vessels anchored along the Singapore straits in Singapore.
Photographer: Roslan Rahman/AFP/Getty Images
A hoard of Iranian oil on tankers at sea and swelling onshore inventories in China will provide an initial cushion for the world’s biggest importer from the fallout of the conflict in the Middle East.
Currently there are more than 46 million barrels of Iranian crude on vessels in Asia, with close to 80% of the ships anchored in the Singapore Strait and off the Chinese coast, according to data from Kpler Ltd. China also stockpiled crude at onshore sites over the past year at a rapid rate, including for strategic storage, which helped to buffer the broader global market from rising supply.