China’s years of crude oil stockpiling and subsequent pullback on purchases after the Middle East war erupted in late February helped the world avoid a far deeper energy crisis. The closure of the Strait of Hormuz choked off 20% of global energy supply, yet analysts had forecast prices surging to $150 to $200 a barrel, while Brent crude now trades around $100. China holds approximately 1.4 billion barrels of strategic crude oil inventories, roughly four months of consumption, compared with 825 million barrels in the United States. The world’s largest oil buyer slashed imports below 8 million barrels per day in May and June, though purchases rebounded 22% and 6.2% month-on-month in July and August, signaling a gradual return to normal buying patterns.
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