Copyright timesnownews
As the United States tightens sanctions on Russian oil, People’s Republic of China is quietly ramping up its crude-oil stockpiles at a pace that could reshape global energy markets. According to a report in the Wall Street Journal, China imported on average more than 11 million barrels a day in the first nine months of 2025, with up to 1–1.2 million barrels per day estimated to be diverted into storage for reserves. Energy Security: A Long-Term Priority Energy security has been a recurring theme in China’s policy rhetoric. With roughly 70% of its oil consumption imported, China remains heavily dependent on foreign flows. President Xi Jinping has repeatedly asserted that “the energy rice bowl must be held in our own hands,” underscoring the strategic priority. Given that imports exceed 11 million barrels daily, China’s reserve build-up becomes highly significant. Analysts estimate that China’s combined strategic and commercial stockpile now stands at about 1.2–1.3 billion barrels. At the same time, the country’s total storage capacity is estimated at over 2 billion barrels, implying ample headroom for additional accumulation. While the US and EU impose sanctions on Russian crude producers such as Rosneft PJSC and Lukoil PJSC, China’s independent refiners (“teapots”) remain relatively insulated , many trade in Chinese yuan rather than US dollars and rely on domestic regional banks rather than Western-dollar settlement. According to Russia’s Ministry of Energy, only about 5% of its oil exports settle in US dollars. Global Market Implications The scale of China’s accumulation is already influencing oil markets. By absorbing excess supply, China helps blunt downward pressure on crude prices. For example, benchmark Brent crude, which dipped toward the low-$60 range earlier in the year, found some support from Chinese buying. Analysts say if China were to halt purchases, oil could rapidly slip toward the low-$50 a barrel zone. According to S&P Global Commodity Insights data, China’s onshore inventory build-up reached around 530,000 barrels per day , one of the largest increases outside the historic surge during 2020. Strategic Infrastructure Expansion Aside from buying crude, China is expanding its storage infrastructure. According to a Reuters analysis, China is adding 11 new oil reserve sites in 2025-26, with a combined capacity of roughly 169 million barrels (≈26.8 million m³) , equivalent to about two weeks’ worth of China’s net imports. These sites are scattered inland (Shaanxi province, Yunnan) and along the eastern/southern coasts. With storage capacity now estimated at ~2 billion barrels and just ~60% of that reportedly used, China retains considerable room for further accumulation. Strategic Motives Beyond Economics While cheap oil provides part of the motivation, analysts point to deeper drivers: the increased urgency of energy security amid geopolitical tensions, sanctions risk, and supply-chain vulnerabilities. One commentary noted that Beijing’s build-up “isn’t just about low prices” , it’s about ensuring shot-term resilience in a volatile world. In effect, China is using its growing storage to “hedge” against disruptions , whether from sanctions, regional conflict (e.g., Taiwan Strait), or supply disruptions in Russia or the Middle East. What It Means for India and the World For India and other oil-importing nations, China’s stockpiling may mean stiffer competition for barrels in tight markets.For oil exporters like Russia, Iran and Venezuela, whose buyers may face sanctions, China remains a major buyer and thus a critical outlet.For global oil prices, the resilience in demand from China implies prices may remain higher than they would otherwise in a supply-heavy environment. Key Takeaways China imported over 11 million barrels/day in the first three quarters of 2025; ~1–1.2 million barrels/day were likely channelled into reserves.Combined strategic & commercial stocks are estimated at 1.2–1.3 billion barrels.Storage capacity: ~2 billion barrels, with usage around ~60%. China is continuing infrastructure build-up , adding ~169 million barrels of capacity across 11 new sites.China’s purchases are helping absorb global oversupply; if China stops buying, oil prices could fall fast.
