Oil Daily | China's Crude Stockpiling Grows Amid High Refinery Runs, Impacting Global Oil Prices

【Global Oil Supply and Demand】

Despite high refinery runs in August, China had an excess of 1 million bpd of crude, indicating continued stockpiling. Analysts estimate a stockpiling rate of 990,000 bpd, which is insufficient to support oil prices due to a looming glut. China's focus is on energy security, with anticipated stockpiling into 2026.

【Oil-Producing Countries Dynamics】

Some NATO members resist Trump's call to ban Russian oil imports for a Ukraine peace deal, citing energy security concerns. Turkey, Hungary, and Slovakia oppose further Russian oil import restrictions. Trump also suggests high tariffs on China to deter Russian crude purchases. The EU is urged to suspend Russian energy imports.

【Others】

China's coal production fell by 3% in August due to government measures against oversupply, despite a 3% year-on-year increase. Beijing's campaign to curb overcapacity affects coal and other industries. New coal power capacity approvals are rising, with forecasts of 80 GW this year, aiming to align domestic production and imports with demand.

【Latest Oil Policies】

Britain and the U.S. will sign an agreement to advance nuclear power, marking a "golden age of nuclear." The Atlantic Partnership for Advanced Nuclear Energy aims to streamline reactor approvals and attract investment. Projects include modular reactors in England and a nuclear-powered data center in Nottinghamshire. Regulatory alignment will reduce reactor approval times.

【Others】

The UK and US nuclear agreement highlights a shift in nuclear policy, emphasizing energy security and industrial competitiveness. The UK aims to reverse its nuclear fleet decline and triple nuclear capacity by 2050. The initiatives support clean energy, digital infrastructure, and economic growth, tapping into surging electricity demand.