China Stops Filling It's SPR, Portending Downward Pressure on Oil Prices
China stops filling strategic oil reserve
By Javier Blas in Oslo for the Financial Times
China appears to have stopped filling up its strategic petroleum reserve (SPR) – removing a big source of incremental demand from the global crude oil market.
Early this year, Beijing shored up oil consumption and prices by diverting millions of barrels of crude oil into its burgeoning emergency reserve. But new data suggest that the buying spree ended in early September. and drastically slowing imports.
“Evidence suggests that the filling of recently completed Chinese strategic storage capacity has ceased,” the IEA’s oil market report said.
The estimates by the IEA suggest that China diverted 106m barrels into its SPR in the first seven months of the year.