China's Oil Stockpiles Reshape Global Energy Power — SkimNews
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- China slashed its oil purchases by 23% in the first six months of the war with Iran compared with the same period a year earlier, according to customs data, thanks to massive strategic stockpiles and expanded refining capacity.
- China cut off supplies of jet fuel, gasoline, and diesel to neighboring countries in the war's early months, demonstrating new leverage over regional energy flows rather than merely insulating itself.
- Crude oil prices as of late August were roughly $10 a barrel lower than they would have been if China had continued buying at prewar levels, per Goldman Sachs oil research lead Daan Struyven.
- China now holds what the source calls an unparalleled position across the energy landscape, adding dominance in solar panels, batteries, and electric vehicles to its oil stockpiles and refining capacity.
- Julian Gewirtz, a former White House and State Department official who worked on China issues in the Biden administration, called the shift "profound" for how Beijing weighs global strategy decisions.
Why it matters: Oil producers like Saudi Arabia and the United States have traditionally held most of the cards in global energy markets, but China's stockpiles now let it throttle demand — suppressing crude prices by roughly $10 per barrel during the Iran war — and even cut off refined fuel exports to neighbors. Former officials warn this reduced oil vulnerability removes a key Western deterrent against Chinese military action toward Taiwan.
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