China's Oil Stockpiles Help Keep Global Prices in Check

China's years of stockpiling oil and subsequent reduction in imports since the Middle East war erupted in late February have helped keep a lid on global prices, according to economists. The country has been tapping into its 1.4 billion barrel strategic crude oil inventories, which is significantly more than the US's 825 million barrels as of December 2025.

The buffer may be tested if China resumes purchasing at pre-war levels, which could deepen the drag on global growth from elevated oil prices beyond current estimates, said Krishna Srinivasan, director for the Asia and Pacific Department at the International Monetary Fund. China's crude imports rebounded 22% in July and 6.2% in August compared to the previous month, though still below last year's level.

'China kind of saved the day' by keeping oil prices from surging to $150 to $200 a barrel as forecasted before the war, said Paul Gruenwald, global chief economist at S&P Global Ratings. Brent crude prices had eased to around $80 a barrel but shot up again in recent days and crossed $100 a barrel on Wednesday amid renewed hostilities between Iran and the US.