China Close to Tapping Commercial Oil Stockpiles, FGE Says

China, the world’s biggest crude importer, is close to tapping its vast commercial oil reserves as the Middle East war shows no signs of ending, according to FGE NexantECA.

A drawdown in commercial and operational stockpiles amounting to as much as 1 million barrels a day may happen over the next four to six weeks, according to the industry consultant’s base case scenario. Processors — particularly in southern China — may be allowed to draw on commercial stockpiles to limit the extent of run cuts or prevent shutdowns, it said.