The Chinese government is considering increasing its strategic reserves of crude oil after the fall in oil prices in recent times. Insiders say that to press agency Bloomberg. High-level consultations on this possibility would currently be held in Beijing, although no decision has yet been taken.
According to the sources, planners from the Chinese government are now in talks with state energy companies about increasing strategic oil reserves. Such a move could help to counter the oversupply on the oil market and to support prices. Oil prices are under pressure from concerns about the damaging economic impact of the new corona virus and the price war that Saudi Arabia has unleashed on the oil market.
China is very reluctant to provide information about its strategic reserves, but the maximum storage capacity should rise to 503 million barrels by the end of this year.
In Washington, lobbying groups in the US government would also call for an expansion of strategic oil reserves to lend a helping hand to US oil producers. The oil reserves of the United States currently amount to 635 million barrels.