China’s foreign ministry spokesman Zhao Lijian on Wednesday said that the country would release crude oil from its strategic reserves depending on its needs. Zhao added that Beijing would maintain close communication and cooperation with oil consumers and producers to ensure the long-term stability of the oil market. On Tuesday, US President Joe Biden announced the planned release of 50 million barrels of strategic oil reserves in a coordinated effort with China and other oil-importing countries to curb prices. However, Zhao declined to confirm whether China was participating in the coordinated releases led by the US.
China’s National Food and Strategic Reserves Administration on November 18 said that it was planning on tapping state inventories. However, it did not provide further details regarding its next release. In September, China rolled out its first-ever public auction offering 7.38 million barrels of crude oil from its state inventories. The move was part of the government’s sweeping measures to tackle soaring commodity prices. Beijing does not disclose its strategic crude reserve level, but some analysts estimate it at around 220 million barrels, equal to about 15 days of the country’s consumption.
