By purchasing 20 million barrels of crude oil from West African countries, Canada, and South America, China has once again become the center of attention in the energy market. These purchases are made in response to rising oil prices and declining oil reserves in the country, and it seems that China is looking to strengthen its position in the global oil market.
Rising Oil Prices and Existing Challenges
In recent weeks, oil prices in global markets have sharply increased due to factors such as declining oil reserves in major industrial countries like the United States and disruptions in oil supply from Gulf countries. Energy market experts believe that recent developments in Yemen and the closure of the Bab el-Mandeb Strait to Saudi vessels have exacerbated this situation. In this context, China, which is the largest buyer of crude oil in the world, has turned to new markets and is trying to strengthen its reserves.
Read more: Parviz Khosrowshahi: Dependence on Oil Has Made Iran's Economy Vulnerable
China's Need to Rebuild Oil Reserves
Afshin Javan, an energy market analyst, believes that China has returned to purchasing crude oil in the international market with greater urgency. He explains that given the significant decline in China's oil reserves amid geopolitical tensions, the country is looking to fill its tanks. Statistics show that in recent years, China has been accumulating crude oil and is currently in a good position to deal with potential crises.
However, Javan points out that the increasing trend of China's oil reserves may be temporary, and the country is still in the process of filling its tanks. According to him, the utilization rate of China's oil storage capacity is decreasing, indicating that the country's oil reserves are continuously declining. For this reason, China is continuously purchasing crude oil to strengthen its reserves.
Efforts to Reduce Dependence on Supply Sources
Chinese refineries have recently purchased over 20 million barrels of crude oil from West Africa, Canada, and South America. This action reflects China's efforts to reduce dependence on supply sources that are affected by geopolitical tensions. Currently, access to some shipments from the Gulf has become more difficult, prompting China to buy from other sources.
Meanwhile, Javan points to the increasing refining demand in China, stating that this growth in demand prevents rapid increases in oil reserves. In other words, although China is buying more crude oil, the rise in refining consumption may lead to a reduction in reserves. Currently, crude oil processing in China has reached a high level, and many shipments quickly enter refining units, leaving little in storage.
Overall, it seems that China is trying to strengthen its position in the global energy market by purchasing 20 million barrels of crude oil and somewhat distance itself from the existing crises in its energy supply. These developments could have widespread implications for global oil markets and position China as a key player in this field.
Read more: Iran's Ambassador in Azerbaijan: Border Provinces as a Communication Line for Trade Development · China's Response to New U.S. Sanctions Against Iran and Russia
