• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 3 hours Would bashing China solve all the problems of the United States
  • 6 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 1 hour Model 3 cheaper to buy than BMW 3 series.
  • 1 min Thugs in Trumpistan
  • 10 hours Pompeo's Hong Kong
  • 46 mins China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 1 day China to Impose Dictatorship on Hong Kong
  • 20 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 15 hours China’s Oil Thirst Draws an Armada of Tankers
  • 9 hours Income report showing potential future spending and economic growth
  • 2 hours Coronavirus hype biggest political hoax in history
  • 10 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 11 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 2 days 60 mph electric mopeds
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

Higher Oil Prices Slow China’s Crude Stockpiling

Taking advantage of the low oil prices, China increased its Strategic Petroleum Reserve (SPR) by almost 14 percent between June 2016 and June 2017, according to data by its National Energy Administration (NEA).

As oil prices increased in the third and fourth quarter this year, the pace of the Chinese state oil reserve stockpiling has eased, according to analysts cited by Reuters.

China rarely releases figures about its strategic reserves, and the data announced today is the first in eight months.

According to the NEA, China had 37.73 million tons of oil, equal to 275 million barrels, in nine bases by the middle of 2017, up from 33.25 million tons at end-June 2016.

In the previous Chinese update on its SPR, in April 2017, China said it had added 9.34 million barrels of crude oil to its state reserves during the first half of 2016, equal to an average fill rate of 52,000 bpd. 

Reuters has estimated the fill rate in the June 2016-June 2017 period at 89,600 bpd, higher than the H1 2016 average, but much lower than the 2015 fill rate of 240,000 bpd.

“Stockpiling picked up in the second half of 2016 as the government took advantage of lower crude prices and filled up some newly built tanks,” Emma Li, senior analyst at Thomson Reuters Oil Research, said, commenting on the Chinese data.

Related: A New Era For Oil And Gas Majors

The rate of the stockpiling, however, eased in the second half of 2017, following the rebound in oil prices, according to Li.

China’s irregular and opaque reporting of SPR data leaves analysts guesstimating how much oil storage capacity and oil in storage the country really has.

Last month, satellite imaging data suggested that China had started to build its crude oil inventories after two months of declines, Orbital Insight said. According to the company’s data, the first nine days of November saw an inventory increase of 37 million barrels, after a 120-million-barrel draw in September and October. Earlier Orbital data suggests that over the three years from 2014, China has built its inventories by 22 million barrels on average over the last two months of the year.

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 G Salameh on January 01 2018 said:
    Even with a possible slowdown in China’s stockpiling of oil for its Strategic Petroleum Reserves (SPR) because of rising oil prices, it is still going ahead with long-term plans to stockpile the equivalent of 90 day’s of oil imports.

    However, China’s oil imports in 2018 are projected to exceed 10 million barrels a day (mbd) or 71% of its oil needs. This is based on a projected 7% economic growth in 2018 and a continued production decline in its two largest oilfields: Daqing and Shengli because of rising costs of production.

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

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News