Daily Management Review

China to auction off oil from its strategic reserves


The State Food and Strategic Reserves Bureau of the People's Republic of China for the first time auctioned off oil from the national reserves in order to reduce the price of raw materials for local refineries and the chemical industry.

Department of Energy via flickr
Department of Energy via flickr
"This is the first time the bureau has organized the auctioning of crude oil from national reserves [for auction]... This measure is intended mainly for domestic oil refineries and chemical industry enterprises in order to alleviate price pressure on them," the statement reads. The volume of oil batches to be put up for sale by the Chinese authorities was not specified.

Against this background the price of November Brent crude oil futures fell by more than 1.52% to $71.49 per barrel. Texas light oil WTI fell in price by 1.15% to $68.5 per barrel, according to the trading data on the Intercontinental Exchange ICE.

At the end of July 2021 Bloomberg agency with reference to sources reported that the Chinese authorities intend to decide for the first time in history to sell oil from strategic reserves. The publication's interlocutors estimated the amount of oil that would enter the market, in 22 million barrels. 

source: xinhuanet.com