China's Oil Stockpiles Help Moderate Global Prices Amid Iran Conflict

When US President Donald Trump launched his war against Iran in late February, energy analysts predicted that oil prices could more than double during a protracted conflict.

However, six months into the conflict, oil prices remain volatile but have avoided the worst-case surge.

The Chinese government's decision to tap its massive oil stockpile has been credited with helping to moderate global oil prices and ease demand on other countries.

China's strategic reserve, built up over years at a cost of billions of dollars, is now being drawn upon to meet the country's energy needs in the face of disruptions to oil supplies from Iran.

Rosemary Kelanic, director of the Middle East program at Defense Priorities, said that China has been 'free-riding' off Beijing by relying on its stockpile to keep oil prices down.