Chinese government agency defines plan to release oil reserves

China’s state reserves agency reported that it is working on the release of oil stocks, although it declined to comment on a request by the United States to the world’s main consuming nations to use their stored inventories to reduce barrel prices. in the international market.

China’s National Food and Strategic Reserves Administration told Reuters when asked to comment on the US request that it would reveal details of the measure on its website.

“We are carrying out the effort to release crude oil reserves. And for any details related to the release, we will post a statement on our website“Said a spokeswoman for the state agency.

China, the world’s largest oil importer, launched its first public auction of state crude reserves to a select group of domestic refineries in September, with the aim of stabilizing energy prices.

Beijing also said earlier this month that it would use its state fuel reserves to control rising diesel and gasoline prices.

Brent oil prices have gained as much as 69% this year.

China it keeps the volume of its strategic reserves secret. The last public update was in 2019, when the National Energy Administration revealed that the country had crude inventories, including state barrels and stocks from firms and oil tanks, that could last up to 80 days.

Consulting firm Energy Aspects estimated at the beginning of the year that China’s state oil reserves contain around 220 million barrels of crude, which is equivalent to 15 days of demand.

“Physical oil markets in Asia remain tight. A coordinated release of reserves could have a greater impact, although it would be temporary“Citi analysts said in a note.