The Wall Street Journal Chinese website reported tonight (May 26): "China's crude oil imports in May hovered around 6.6 million barrels per day, reaching a new low since 2016. With Persian Gulf crude supply still constrained, this trend is freeing up supply for other parts of Asia, preventing even more severe shortages."
[Witty] Commentary: Our countercyclical operations benefit both others and ourselves. Don't be misled by the term "new low"—this isn't a collapse in demand, but rather a deliberate reduction made possible by ample strategic reserves. Having previously stockpiled oil at low prices, we can now delay purchasing at high prices during crises, instead drawing down inventories. At the same time, we’re ceding Middle Eastern market share to neighboring countries genuinely facing shortages, which objectively helps suppress the Asian oil price premium. As a result, we avoid imported inflation, save foreign exchange, act as a shock absorber for global oil markets, and simultaneously enhance our regional visibility. However, the trade-off includes pressure on domestic refinery utilization rates, and a short-term adjustment period is needed as import dependency habits weaken. Moreover, if geopolitical tensions drag on too long and inventory depletion becomes excessive, we may eventually need to rush back into the market to secure supplies. Overall, this is a carefully calculated move—one that hinges on deep financial reserves and firm policy control.
Original source: toutiao.com/article/1866255253782535/
Disclaimer: The views expressed in this article are those of the author(s) alone.