How China eased pressure on oil markets by halting purchases and relying on reserves

How China eased pressure on oil markets by halting purchases and relying on reserves Submitted by Gaspard Rouffin on Thu, 08/20/2026 - 09:23 Beijing’s vast stockpiles and reduced crude imports have helped absorb a supply shock that might otherwise have sent global prices soaring An oil tanker unloads imported crude oil at a terminal in Qingdao Port, eastern China, 16 July 2026 (AFP) Off The closure of the Strait of Hormuz should, in principle, have caused a far greater shock to oil markets than it has. This, in large part, is due to China’s policy of using its strategic stockpiles rather than purchasing crude oil at inflated prices due to the war. Before the war, the strait carried roughly 20 million barrels per day (bpd) – a fifth of global daily oil consumption – with an estimated 10 to 14 percent of global supply remaining inaccessible six months on.