China's Strategic Oil Reserves Helped Stabilize Global Prices Amid Hormuz Closure
Five months after the Strait of Hormuz closure disrupted over 10% of global crude supply, oil prices have not surged to previously feared levels. Instead, strategic reserve releases and reduced Asian consumption helped prevent extreme price spikes. China played a pivotal role by drawing down its massive stockpiles—estimated at up to 1.4 billion barrels—and cutting imports significantly during the crisis. China slashed crude oil imports in June by an estimated 4 million barrels per day compared to pre-war levels, reducing demand and offsetting lost supply from the Gulf region. This behavior was supported by a shift toward electric vehicles, coal use, and renewable energy sources within China itself. The country’s opaque but substantial reserves allowed it to remain resilient during the crisis. As of 2025, China held more oil in its stockpiles than any other nation combined, according to U.S. Energy Information Administration estimates. Its actions have been a key factor in keeping global crude prices from spiking beyond $100 per barrel.
Topics: China crude oil imports global oil prices Strait of Hormuz closure