China has begun drawing on its commercial crude oil reserves to help cushion the impact of supply disruptions caused by the war involving Iran, Bloomberg reports.
The world's largest oil importer is also continuing to rely on lower refinery utilization rates and restrictions on fuel exports as part of its broader strategy to manage the fallout from the conflict.
Bloomberg, citing estimates from energy analytics firms Vortexa, Kpler, and Energy Aspects, reported that China's oil inventories are expected to decline by an average of about 1 million barrels per day in the coming months. The projected drawdown represents roughly one-third of the crude supplies China is no longer receiving following the near-total closure of the Strait of Hormuz.
Despite the anticipated decline, the reduction remains modest compared with the approximately 1.2 billion barrels held in China's combined commercial and strategic petroleum reserves.
According to the report, China's strategic oil reserves remain highly secretive, while the country's long-term stockpiling goals and extensive use of underground storage facilities make it difficult to accurately assess inventory levels. As a result, market participants largely depend on satellite imagery and estimates from independent organizations to gauge the size of China's reserves.
China increased its oil stockpiles to record levels over the past year and began drawing them down in May, when inventories fell by nearly 25 million barrels.
The report also highlighted a decline in crude imports. During the first five months of 2026, China's crude oil imports dropped by almost 5% compared with the same period a year earlier.
By Vafa Guliyeva
