China isn’t stockpiling any more oil until expanded storage facilities are constructed, according to Zeng Yachuan, deputy director-general of the policies and laws department at the National Energy Administration.
Ultimately, China wants enough oil to hold them for 90-100 days. Currently, the country has storage tanks with oil capacity to last 30 days. Those tanks are filled.
China is planning on building a second set of storage facilities in inland China soon. Those will be underground caverns and storage tanks.In addition to the government’s official efforts, Sinochem, a Chinese chemical company, is building its own stockpile of oil.
China is trying to stock up while oil is cheap relative to last year, and relative to future estimates of price.
Since we find it hard to trust China, we wonder if they’re saying they’re not stockpiling, hoping that will cool off the rising price, while actually purchasing oil at a lower price.
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