How China eased pressure on oil markets by halting purchases and relying on reserves

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Beijing’s vast stockpiles and reduced crude imports have helped absorb a supply shock that might otherwise have sent global prices soaring The closure of the Strait of Hormuz should, in principle, have caused a far greater shock to oil markets than it has. This, in large part, is due to China’s policy of using its strategic stockpiles rather than purchasing crude oil at inflated prices due to the war. Before the war, the strait carried roughly 20 million barrels per day (bpd) – a fifth of global