China Ramps Up Oil Reserves as Global Supply Softens

China is aggressively expanding its crude oil reserve capacity amid a broader state-led stockpiling drive, adding 169 million barrels across 11 new sites through 2025–26 to better shield itself from external supply disruptions. 

So far, about 37 million barrels of this capacity is already built, which would amount to nearly two weeks’ worth of China’s net oil imports.  The push to stockpile comes as global energy flows remain volatile following Russia’s invasion of Ukraine, intensifying Beijing’s urgency to secure long-term energy security. 

Beyond strategic reserves, China is increasingly blurring the line between commercial and strategic stockpiles, allowing state refiners to rotate holdings more freely while still contributing to national security goals.  New storage projects are sprouting in both coastal and inland provinces—like a 20 million barrel Sinopec site on Hainan Island and facilities in Shaanxi province. 

Analysts note that China’s latest buildout nearly matches the 180–190 million barrels of new storage added over the past five years, signaling a steep acceleration.  With underlying oil prices weakening, this stockpiling helps absorb surplus supply—or at least offers China more flexibility to manage imports and consumption. 

For global markets, China’s ramp may tighten crude availability—and potentially support prices—even as OPEC+ eases production cuts. For Beijing, the strategy is clear: in an energy landscape fraught with geopolitical risk, ample reserves equate to stronger security.