SEATTLE (Oil Monster): Since March of this year, China's crude oil inventories have grown dramatically, according to Lin Ye, vice-president, oil markets – downstream at Rystad Energy. The nation's aggressive crude stockpiling is probably going to have a significant impact on the dynamics of world supply.
Shadow fleets have developed to transport crude oil from Iran to a few ports in China, primarily in Shandong, as a result of the ongoing sanctions on Iranian oil exports. The overall risks related to petroleum exports from Venezuela, Iran, and Russia have increased as a result of the U.S. sanctions. But in March of this year, the Chinese imports from these three businesses reached a record high.
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Rystad Energy noted that in preparation for more severe western sanctions, independent Chinese refiners were observed importing and stockpiling as much crude oil as they could. It is anticipated that more Iranian crude cargoes would soon reach Chinese ports. At ports, a number of barrels are still pending discharge.
For a number of years, China has been attempting to expand its capacity for storing crude oil. According to Rystad, the nation's overall capacity for storing crude oil has increased dramatically, rising from 1.4 billion barrels in 2015 to 2.03 billion barrels by the end of 2024.
