China still has enough space in oil storage facilities – OPEC

Mohammed Barkindo, Secretary General of OPEC, said the organization was monitoring the growth of oil reserves in China's storage facilities. There is still room for replenishment, but vigilance must be maintained. It is reported by Angi.

“China is one of the largest consumers of energy resources, especially oil. And yes, they took advantage of the current market conditions to replenish their stocks. Particularly strategic,” he said, commenting on concerns about the growth rate of oil stocks in China’s storage facilities as part of a series of online dialogs organized by the CERAWeek conference of IHS Markit.

The Secretary General noted that the rate of replenishment of oil storage facilities in China reached almost 2.4 million barrels per day, and now the total level of reserves has exceeded 800 million barrels.

“But nevertheless, they still have a certain amount of free space in storage, about 330 million barrels,” said Barkindo.

At the same time, he recalled that just a few months ago, the industry panicked due to a possible lack of storage space for oil in the world.

“The same thing in China. It is impossible to invest in storages overnight, you need time to raise funds, build and so on. So it is alarming if demand does not increase at a pace that will allow further reductions in stocks, also news from Beijing that the second wave may begin in China (the COVID-19 pandemic - ed.) is also worrying. All this is troubling. Therefore, we need to be vigilant, we need to continue to openly share information about the state of things, I think this is for the benefit of all,” he concluded.

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