• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 2 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 15 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 14 hours Beijing Must Face Reality That Taiwan is Independent
  • 3 hours Let’s take a Historical walk around the Rig
  • 2 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 33 mins Trump has changed into a World Leader
  • 1 day Might be Time for NG Producers to Find New Career
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 days Phase One trade deal, for China it is all about technology war
Editorial Dept

Editorial Dept

More Info

Premium Content

China’s Worrying Oil Vulnerability

Friday October 11, 2019

1. China’s Middle East vulnerability

- China is the largest oil importer in the world and its vulnerability lies in its dependence on oil flows from the Middle East. China’s oil imports from the region have surged from 0.33 mb/d in 1998 to 4 mb/d in 2018.

- The Abqaiq attack highlighted the stakes. “With over 1 mb/d of Chinese refining capacity designed with Saudi crude as baseload, and imports from Saudi at 1.6 mb/d between January and July 2019, Chinese buyers had reason to panic,” the Oxford Institute for Energy Studies wrote in a report. And “yet on the whole, they remained relatively sanguine.”

- Aramco went to lengths to restore capacity and ensure that shipments were not interrupted. “Perhaps counter-intuitively then, the attacks also highlighted the importance of demand security as large oil producers are opting to supply their biggest client,” OIES said.

- If Saudi shipments were interrupted, China has a strategic petroleum reserve that it could draw upon, as well as commercial stocks. While precise figures are not disclosed by Beijing, OIES estimates that China has 800 million barrels in combined SPR and commercial stocks.

2. Gas glut hits gas stocks hard

- Energy stocks have performed extremely poorly this year, but natural gas-focused drillers are in particular danger.

- Natural gas futures have suffered their longest losing streak…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play