Asia States Add to Oil Stockpiles: WSJ

Asia’s oil-consuming countries, such as China, South Korea and India, take advantage of plunging oil price to add to their strategic petroleum reserves. Since these countries have millions of barrels of spare capacity. Analysts suggest that such purchases would help stabilize oil prices. Oil prices have recently recovered a little from the historical negative prices, but remain down by two thirds compared to the prices at the beginning of 2020. Although coronavirus greatly constrained private demand of oil, Asia’s countries might increase the national reserves to safeguard domestic industries. China’s state-owned oil enterprises have received approval for seven expansion projects capable of holding 26 million barrels in total. India planned to fill up its 39 million barrels strategic petroleum reserves by mid-May. Even so, the emergency oil stocks equivalent of both countries can only cover 80 and 11 days, respectively. Japan, the other economic engine of Asia, already has enough oil and has no plans to increase national reserves soon. – YaleGlobal

Asia States Add to Oil Stockpiles: WSJ

Asia’s countries plan to increase the oil stockpiles during the period of historically low-cost oil
River Davis and Trefor Moss
Sunday, May 3, 2020

Read the article from the Wall Street Journal about Asian nations boosting strategic oil reserves.

River Davis is a reporter for the Wall Street Journal in Japan.

Trefor Moss is based in Shanghai and covers business in China for The Wall Street Journal.

Country	Crude Oil Imports by Country in 2019 (billion USD) China	 239  US	 132  India	 102  Japan	 73  S Korea	 70  Singapore	 24  Thailand	 22
(Source: World's Top Exports)

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