China’s Oil Buying Spree May Be Running Out of Steam

Core Insights - China's oil imports reached a record average of 11.55 million barrels per day in 2025, marking a 4.4% increase from the previous year, with significant stockpiling observed since March 2025 [3] - The country has been actively expanding its oil inventory by constructing 11 new storage sites with a total capacity of 169 million barrels [4] - Chinese refiners and traders have been purchasing record amounts of Russian crude, averaging close to 2.1 million barrels daily in February 2025, up from 1.7 million barrels daily in January [6] Oil Demand and Pricing - Despite discussions of waning oil demand, China continues to import crude at high rates, although this trend may shift as oil prices rise [1][2] - Brent crude prices have stabilized around $70 per barrel, with a bullish outlook compared to earlier forecasts, influenced by geopolitical developments affecting supply security [2] Stockpiling Behavior - China's strategy of stockpiling oil is driven by its historical behavior of purchasing more oil when prices are low and less when prices rise, a common practice among commodity importers [5] - The significant stockpiling rate observed, close to one million barrels per day, indicates a strategic move by China to build reserves [3]