Home / Business and Economy / China's Oil Stockpiling Seen as Crucial to Curbing Global Glut
China's Oil Stockpiling Seen as Crucial to Curbing Global Glut
6 Sep
Summary
- Traders closely watching China's oil buying to absorb excess supply
- China's strategic reserves still over 50% full, leaving room for more stockpiling
- OPEC meeting to discuss accelerating return of halted output, risking surplus
As of September 6th, 2025, the global oil market is moving closer to a long-anticipated glut, and traders are closely watching China's buying patterns to see if it will absorb the excess supply that the world's crude producing nations are set to pump.
Earlier this year, China had piled into the crude market, snapping up millions of barrels, including some for its strategic storage. However, this build-up has since slowed as the nation's domestic demand picked up. With China's vast network of oil tank farms still over 50% full, traders say another buying spree from Beijing would limit the damage from the looming glut in other parts of the world.
The upcoming OPEC meeting on Sunday will be a crucial event, as Saudi Arabia wants the group to accelerate the return of more halted output, adding to concerns about a potential surplus that could depress prices. Traders are waiting to see if China's continued stockpiling will prevent a buildup of supply in key hubs like Midwestern America and Northwest Europe, which could prevent prices from falling too far.
