China stockpiled more oil before war broke out in Iran

In the first two months of the year, before the outbreak of fighting in the Middle East paralysed energy supply lines, China ramped up its oil purchases as part of a continued strategy to shield the country from rising geopolitical tensions.

- ALEXANDRA STEVENSON

An oil tanker unloads crude oil in Qingdao, Shandong province, China, on Tuesday.

(AFP)

The world's largest buyer of oil, China imported 15.8% more oil in January and February over the same period last year, according to customs data released by China on Tuesday.

Beijing has been building up its strategic stockpile over the past year, even as domestic oil consumption has continued to fall. All that oil is now expected to come in handy.

“Oil stockpiling has been taking place for a while now, and Chinese regulators were already preparing for geopolitical tensions to arise from the Trump administration,” said Cosimo Ries, an energy analyst at Trivium China, a consulting firm. “It was a strategic step which, in hindsight, was pretty wise.”