Key facts
- China is reportedly selling from its strategic petroleum reserve amid global oil shortages.
- The country has accumulated approximately 1.5 billion barrels in its reserve.
- Mercuria CEO Marco Dunand stated China has been aggressively selling crude oil.
- This aggressive selling is expected to continue for about three more weeks.
- Brent crude futures rose over 5% to a session high of $101.15.
China has emerged as a relative winner from the ongoing conflict involving Iran, as the country has been aggressively selling crude oil from its strategic reserves to meet global demand amidst high prices. The nation has accumulated a significant reserve, estimated at 1.5 billion barrels, with the intention of becoming the world's largest.
Mercuria CEO Marco Dunand noted that China has been actively releasing its reserve barrels and participating aggressively in tenders, thereby reducing demand from various countries. However, Dunand suggested that this strategy is likely sustainable for only about three more weeks before China may need to reassess its position.
Amidst these developments, Brent crude futures saw volatility, settling up approximately 3% and later climbing over 5% to a session high of $101.15. This surge followed reports that U.S. Vice President JD Vance had canceled a trip to Islamabad for peace talks with Iran, indicating continued geopolitical tensions.