Beijing intensifies oil stockpiling to counter global supply threats amid rising geopolitical tensions.
China is ramping up its strategic oil reserves as part of a broader strategy to safeguard against potential disruptions in the global energy market. A key figure from China’s central planning agency stated earlier today that this move aims to fortify the nation’s defences against any "emergency situation" that may arise.
Wang Changlin, the vice chairman of the National Development and Reform Commission, affirmed that China already possesses a degree of insulation from energy supply shocks. However, he emphasised that the ongoing reserve-building initiatives, coupled with diversification of import sources, are crucial to further enhance the resilience of the world’s largest oil importer.
In addition to bolstering reserves, the Chinese government intends to elevate domestic crude oil production. Last year, China’s daily oil output averaged 4.3 million barrels, climbing to 4.4 million barrels during the first quarter of 2026.
However, escalating prices triggered by the Middle East conflict have impacted import volumes. Recent data indicates a 2.3% year-on-year decrease in oil imports for March, totalling 49.98 million tons. Despite this, overall imports for the first quarter saw an 8.9% increase compared to the previous year, driven by sustained stockpiling efforts.
Natural gas imports also experienced a decline, with March figures down by 11% year-on-year. First-quarter gas imports are estimated to have fallen by 4% compared to the same period last year, according to Bloomberg. Liquefied natural gas imports, in particular, witnessed a significant drop of 22% in March.
As part of its diversification strategy, China is reportedly shifting away from Middle Eastern crude oil, seeking to increase imports from Central Asian producers, particularly Kazakhstan. According to reports earlier this month, Saudi oil shipments to China are expected to decrease substantially, potentially reaching only half of the current month’s import volume in May. April shipments are estimated at 40 million barrels.
China’s Oil and Gas Import Trends
| Category | March (Year-on-Year Change) | First Quarter (Year-on-Year Change) |
|---|---|---|
| Oil Imports | -2.3% | +8.9% |
| Natural Gas Imports | -11% | -4% (Estimated) |
| LNG Imports | -22% | N/A |
