China Plans to Expand Crude Oil Stockpiles as Part of Five-Year Strategy

China Expands Strategic Oil Reserves in New Five-Year Plan

China, the world’s largest importer of crude oil, has announced intentions to significantly increase its strategic oil reserves and enhance storage infrastructure as part of its latest five-year development strategy. While officials have confirmed plans for additional reserve projects, they have not disclosed specific targets or figures regarding the scale of these expansions.

Authorities have outlined ambitions to maintain domestic crude oil production at around 4 million barrels per day (equivalent to 200 million metric tons annually), while also ramping up natural gas output. This production goal is slightly below the 216 million tons achieved in 2025, indicating that China may soon face challenges in further raising its oil output.

In addition to boosting gas production, China is prioritizing the expansion of its crude reserves and storage capabilities. These measures are designed to strengthen the nation’s energy security and reduce vulnerability to global market fluctuations and geopolitical tensions, such as those arising from ongoing conflicts in the Middle East.

Over the past year, China has been actively stockpiling crude oil in both commercial and strategic reserves. This accumulation has helped support global oil prices throughout 2025, even as domestic demand growth has slowed.

Estimates suggest that China has been diverting more than 1 million barrels per day into its inventories for nearly a year, capitalizing on lower international prices and discounted supplies from countries like Iran, Venezuela, and Russia.

Experts note that China’s strategy of building reserves during a period of favorable prices is now yielding benefits. As disruptions affect oil shipments from the Middle East, China’s substantial reserves provide a buffer to help weather the initial impact of supply interruptions.

By aggressively purchasing discounted crude—including sanctioned oil—China is partially shielding its economy from short-term supply shocks, especially as tensions escalate in the Gulf region.

By Charles Kennedy for Oilprice.com