Beijing blocks Sinopec’s bid for access to oil reserves
China rejects request to tap 95 million barrels as Middle East risks rise due to the Hormuz block.
China has turned down Sinopec’s request to draw 13 million metric tons, around 95 million barrels, from national commercial oil reserves to help close an expected supply gap linked to disruptions from the U.S.-Israeli war on Iran, as reported by Reuters.
Sinopec, the world’s largest refiner by capacity, depends on the Middle East for nearly 60% of its roughly 4 million barrels per day of crude imports. The volume requested would have covered about 19 days of processing or 40 days of Middle Eastern supply, including regular shipments from Saudi Arabia and Kuwait.
According to sources cited by the news agency, Beijing also informed refiners that the strategic petroleum reserve. built as an emergency buffer before expanding into commercial holdings, will not be released at this time. China is estimated to hold around 900 million barrels in strategic stocks, equal to roughly 78 days of imports, according to data from Vortexa and industry traders.
