Daily Energy Report
China oil inventory, Saudi/UAE fuel oil, China/Saudi partnership, Trump tariffs hit solar & oil services, China nuclear, Rare earth costs, US LNG to EU, CA idiocy, Spain/Portugal blackout, and more.
April 28, 2025
Chart of the Day
EOA: China’s Oil Inventories Are Below the 5-Year Range
Financial Times: China Stockpiles Oil as Trump Tariff Shock Hits Crude Prices
Summary
Chinese oil traders are boosting crude imports to take advantage of lower prices caused by US tariffs and rising OPEC production, despite concerns about long-term economic damage from the US-China trade war. Imports reached nearly 11 mb/d in April, the highest in 18 months. China is stockpiling crude while prices are low, even as global demand may weaken later this year. Although Chinese buyers have reduced Iranian oil imports, they continue purchasing discounted Iranian crude to maintain slim profit margins.
China's oil inventories recently increased but remain below the 5-year range for this period as shown in Figure (1). China significantly influences oil markets as demonstrated by the large impact of the decline in imports in 2024 due to reduced oil demand amid slower economic growth.