Gunvor Group: China's SPR fill rate is around 60%, leaving ample room for further increases

Gunvor Group: China's SPR fill rate is around 60%, leaving ample room for further increases

China has initiated a significant increase in its strategic oil reserves, adding 8 million metric tons, or approximately 60 million barrels, to its emergency stockpiles. This move, announced by the Chinese government, aims to secure the country's energy supply and is part of a broader strategy to respond to fluctuating global markets and volatile oil prices [1].

The total planned storage volume is equivalent to four days' processing at domestic refineries, or around 220,000 barrels a day, as calculated by Reuters. This initiative, running from July to March next year, represents one of China's largest accumulations in recent years. The country currently imports around 11 million barrels of crude oil daily. Five major state-owned oil companies, including CNPC, Sinopec, CNOOC, Sinochem, and Zhenhua Oil, have been tasked with this mission [1].

China's strategic petroleum reserves (SPR) are estimated to be around 290 million barrels by Vortexa, compared to the U.S. strategic reserve of 372 million barrels at the end of June, as reported by the U.S. Energy Information Administration. The Chinese government operates at least a dozen SPR bases along the east and south coasts, with new infrastructure projects underway, such as Zhenhua Oil's 3 billion yuan ($412.46 million) reserve site in Shandong province [1].

The increase in China's SPR comes at a time when global oil prices are already high. This move is likely to support the current high prices by reducing the need for immediate imports. The Chinese government's decision to bolster its reserves also reflects its strategic planning in response to potential disruptions in global oil supply.

References:
[1] https://energynews.pro/en/china-60-million-barrels-added-to-strategic-reserves/