China Emerging as a Key Force in Global Oil Markets, Analysts Say
Islamabad: China is increasingly becoming a major influence on global oil prices, with analysts suggesting that Beijing’s energy policies now play a role comparable to that of traditional oil powers such as Saudi Arabia, Russia, and the United States.
According to a report cited by Indian media, global oil supplies came under significant pressure during the Iran conflict due to concerns over potential disruptions in the Strait of Hormuz. However, oil prices did not experience the dramatic surge seen during previous major crises.
Experts attribute this stability largely to China’s strategic use of its vast oil reserves. The report states that China drew on stockpiles accumulated over several years and reduced its crude oil imports by nearly three million barrels per day. This move lowered global demand and helped limit upward pressure on prices.
The report further claims that China holds more than one billion barrels of oil in reserve. In addition, the growing adoption of electric and hybrid vehicles across the country has significantly reduced domestic oil consumption.
Analysts quoted in the report noted that if oil prices fall further, China could return to the market with large-scale purchases, potentially reshaping global supply and demand dynamics.
Market observers say the global oil market is no longer influenced solely by decisions made in Riyadh, Moscow, or Washington. Instead, China’s purchasing patterns and stockpiling strategy are increasingly playing a critical role in determining price trends.
The report added that lower oil prices have provided temporary relief for India, although experts believe New Delhi should further expand its strategic petroleum storage capacity to better manage future market volatility.
