• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 11 minutes Forecasts for oil stocks.
  • 7 hours U.S. Presidential Elections Status - Electoral Votes
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours China Producing Half of the Worlds Electrical Vehicle Batteries is Experiencing Explosive Pollution
  • 5 hours California breaks 1 GW energy storage milestone
  • 17 hours Colonial pipeline hack
  • 1 day Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
  • 2 days Survival of Oil and Gas industry.
The Next Major Wildcard For Oil

The Next Major Wildcard For Oil

Fresh travel restrictions in Asia…

The Perfect Nation For A Renewable Energy Revolution

The Perfect Nation For A Renewable Energy Revolution

Australia has been blessed with…

Futures Exchanges Gear Up For EV Boom

Futures Exchanges Gear Up For EV Boom

The CME’s Comex and London…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

China’s Oil Storage Levels Are Falling In Early 2021

Crude oil inventories in China have accelerated their decline in recent weeks, Bloomberg reported on Wednesday, quoting data analytics company Kayrros.

At this time last year, Chinese stocks stood at 856 million barrels, according to Kayrros, which compiles and analyzes satellite data.  

At the start of this month, inventories stood at around 990 million barrels, down from a peak of 1 billion barrels last September, the data cited by Bloomberg showed.

The decline in crude oil stocks in recent weeks is bullish for oil prices as it suggests that the market has accelerated the inventory drawdown.

According to Kayrros, “COVID-19 has accelerated a rebasing of Chinese stocks also led by new storage capacity, new refining capacity, and a renewed focus on import independence and energy security,” co-founder Antoine Halff said.

China’s inventory build last year was initially led by demand after the Chinese lockdowns ended, and then stocks increased because of soaring crude oil imports, Kayrros said in a report.

“China effectively served as a sink for the world’s excess production at a time when other consumers cut back on imports and started drawing down inflated inventories,” the company said.

The expansion of China’s storage capacity and the efforts to have more stocks to ensure energy security has likely reset China’s baseline for inventories at a higher level, said Kayrros, noting that a drop from the current levels—albeit still high—would “likely be more bullish for prices than would have been the case in the past.”

Alongside faster onshore stock drawdowns in China and elsewhere in the world, floating storage has also started to shrink at a faster pace.

Global floating oil storage declined at a fast pace in December as traders sold crude held on tankers in the absence of price incentives to store it, and in order to meet peak winter demand in Asia, analysts and sources at trading firms told Reuters last month.    

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on February 03 2021 said:
    China’s accelerating crude oil imports are intended to achieve two major goals. The first is to satisfy the growing demand of the world’s largest economy based on purchasing power parity (PPP). And the second is to ensure its energy security by building up its strategic petroleum reserve and general storage.

    That is why China has been expanding its storage capacity. But this very act has as much bullish influence on crude oil prices as falling oil storage levels.

    This is helping reduce volumes of oil stored around the world. The same is also happening in the United States, the world’s second largest economy. This partly explains the recent surge in oil prices along with OPEC+ production cuts and a widening vaccine rollout around the world.

    Brent crude oil price is heading towards $60 a barrel in the first quarter of 2021 and is projected to rise further to $70-$80 in the third quarter and average $60-$65 in 2021. Moreover, Global oil demand is projected to recover to pre-pandemic level of 101 million barrels a day (mbd) by the middle of 2021.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News