China Uses Oil Reserves to Smooth Out Supply Gap

China has begun drawing on its commercial oil stocks to counter the shortage caused by the war in Iran. The country’s biggest buyer of petroleum is also cutting refinery output and limiting fuel exports to keep the situation stable. Experts estimate that China will pull about one million barrels each day from its reserves in the near future. This amount is roughly a third of the crude it no longer receives because shipping through the Strait of Hormuz has been almost shut down.Even so, China still holds about 1. 2 billion barrels in commercial and strategic stockpiles—a far larger cushion than the daily draw. By using its reserves, China aims to avoid sharp price spikes and supply disruptions for its consumers. The strategy also shows how the world’s largest oil importer can manage a sudden shock without overrelying on new imports. The move highlights the importance of maintaining sizable stockpiles in a volatile global market, especially when key shipping lanes become uncertain.