People’s Daily recently reported that, according to the National Bureau of Statistics, Phase One of the National Strategic Oil Reserve project has been completed. There are 12.43 million tons of crude oil stored in four National Reserve Bases. That’s the equivalent of around 91 million barrels. This is the first time the Chinese authorities have revealed detailed numbers on their National Strategic Oil Reserves. These numbers are lower than the estimates that Western analysts have provided. The Bureau has furnished no information on Phase Two and Three of the Reserve construction plan. The Phase One reserve volume is only enough to supply nine days’ worth of consumption, which is far below the 90-day Import Volume standard that the International Energy Agency recommended. The current low global oil price offers China a very good opportunity to stock up on its Reserves.
Source: People’s Daily, November 22, 2014