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US-China relations
EconomyChina Economy

Explainer | How big are China’s crude oil reserves and how do they compare to the US’ SPR?

  • The US asked China to release crude oil reserves to help stabilise soaring international prices as part of ongoing discussions on economic cooperation
  • The issue was raised during the virtual meeting between Chinese President Xi Jinping and US President Joe Biden at the end of November

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The issue of China joining the United States in releasing crude oil reserves was raised during virtual the meeting between Xi Jinping and Joe Biden. Photo: Reuters
Frank Tangin Beijing

In a bid to help stabilise soaring international crude oil prices, the United States has asked China to tap into its crude oil reserves.

The issue came up during a virtual meeting between President Xi Jinping and his US counterpart Joe Biden in November.

The US has the world’s largest reported strategic petroleum reserve, while China as the world’s largest importer of crude oil has also built up a system of its own.

Why does China need a strategic crude oil reserve?

In the 1990s, China said it planned to establish a US-like strategic petroleum reserve system, and the project officially started in 2007 when the National Strategic Oil Reserve Centre was tasked with overseeing the issue.

It came at a time when China was scrambling for global resources – such as buying crude oil from politically turbulent regions such as Sudan, Iraq and Venezuela, and obtaining iron ore from Australia and Brazil – to fund its economic growth.

In the 14 years since then, China’s reliance on overseas oil has increased significantly, largely due to its role as the world’s factory, and because so many more people are driving.

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