China's Oil Stockpile Saves Global Economy from Skyrocketing Prices

The ongoing war in Iran has kept oil prices volatile, but they could be much worse. When President Donald Trump launched his military campaign against Iran in late February, energy analysts predicted that oil prices could more than double during a prolonged conflict.

However, the dire projections have not yet come to pass six months into the war. In fact, Chinese President Xi Jinping's country has been instrumental in keeping oil prices from skyrocketing further.

China has the world's largest oil stockpile, with approximately 1.4 billion barrels stored by the end of last year, according to U.S. Energy Information Administration estimates. By tapping into this strategic reserve, China was able to dramatically cut its crude imports once the conflict began.

The country's shift towards electric vehicles and other energy alternatives also helped reduce demand for oil. As a result, global demand eased, softening the upward price effects on the United States, Europe, and beyond.