Chinese Oil Stockpiling Drives Global Demand

18 Jul 2025 Issue: 68 / 29 By: Jamie Ingram

Global oil markets have defied gloomy economic expectations, with fundamentals pointing to considerable market tightness. This is being aided by China’s strategic buying as it builds up stockpiles, says the IEA.

Physical oil markets remain tight despite the second quarter of the year being dominated by concerns over the impact of US President Donald Trump’s tariff policies on the health of the global economy. The price structure of crude oil futures indicates robust demand even as the market navigates US trade policy volatility, increased Opec+ production and continued concerns over the geopolitical fallout from June’s 12-day Israel-Iran war. Oil prices remain stable at around $70/B.

“We thought that 2024 was the hardest year, but now in 2025 we think that 2024 was a doddle,” Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told last week’s 9th Opec International Seminar in Vienna. He praised Opec for its role in stabilizing oil markets, adding that “Opec continues to provide dialog in a world that needs it more than ever.” (CONTINUED - 963 WORDS)