China's Oil Stockpile Credited with Keeping Prices from Skyrocketing

The ongoing conflict in Iran has had a significant impact on global oil prices. Initially, energy analysts predicted that oil prices could more than double during a protracted conflict.

However, six months into the war, oil prices remain volatile but have not reached the dire projections. One reason for this is China's massive oil stockpile, which has allowed it to dramatically cut crude imports once the US and Israel began their bombardment of Iran.

The Chinese government had spent years and billions of dollars amassing the world's largest oil stockpile, building its strategic reserve to about 1.4 billion barrels by the end of last year. This stockpile has helped China reduce its reliance on foreign supplies and protect itself from potential disruptions in global markets.

According to analysts at Bank of America, if violence escalates and keeps a chokehold on traffic, prices could reach $95 to $120 a barrel. Damage to major energy infrastructure could produce spikes of up to $150 a barrel.