China's Oil Stockpiles Help Stabilize Global Markets Amid Iran Conflict
When 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 war, the most dire projections have not yet come to pass.
Chinese President Xi Jinping has been credited with helping to stabilize global oil markets by drawing on China's massive oil stockpile of 1.4 billion barrels. By slashing crude imports from 12 million barrels per day in January to just 8.1 million barrels per day in the second quarter, Beijing helped ease global demand and softened the upward price effects for the United States, Europe, and beyond.
Rosemary Kelanic, director of the Middle East program at Defense Priorities, noted that China's actions have been driven by contingency planning for potential military action to take over Taiwan. 'We've been free-riding off Beijing in a weird way,' she said.