Analyst: China’s Oil-Buying Strategy Helped Curb Price Surge
Mehran Ebad said China reduced purchases during supply disruptions and replenished strategic reserves when prices fell.
An energy analyst attributed recent oil-market stability partly to China’s flexible purchasing strategy, including reducing imports during supply disruptions and buying to replenish reserves when prices fell.
An energy analyst said China’s management of oil demand helped limit a potential surge in global crude prices during recent disruptions around the Bab el-Mandeb and Strait of Hormuz.
Mehran Ebad told Iran’s IRNA news agency that China, the world’s largest oil importer, at times cut purchases by as much as 40% and avoided panic buying. He said the strategy reduced demand and helped prevent prices from reaching $200 a barrel.
Ebad added that China bought oil when prices declined to replenish its strategic reserves, sourcing part of its supply through Russian and Kazakh routes at discounted prices. He described the approach as more effective than measures by oil producers and OPEC+ in stabilizing the market.