Bloomberg: China is close to tapping into its oil reserves

China, the world’s largest importer of crude oil, is on the verge of tapping into its strategic oil reserves as the war in the Middle East continues with no sign of ending.

According to Bloomberg on Wednesday, FGE Nexant, a leading industrial consulting firm, predicted a decline in commercial and operational inventories of up to 1 million barrels per day over the next four weeks, based on its baseline scenario.

She added that processing plants, particularly in southern China, may be allowed to rely on commercial stockpiles to limit the extent of production cuts or prevent shutdowns.

She added that it is a bargaining chip that China can use. After more than a year of intensive stockpiling, Beijing has amassed an estimated 1.4 billion barrels of reserves that could be exploited if the Strait of Hormuz remains effectively closed.

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