Global supply losses of over 1B barrels and replenishment demand could drive oil prices higher after China’s strategic reserves stabilized markets.
Global oil markets have lost over 1 billion barrels in cumulative supply due to Middle East conflicts, particularly the closure of the Strait of Hormuz. China’s pre-existing reserves, roughly matching the shortfall, temporarily eased price pressures by reducing its purchases. However, nations are now prioritizing reserve rebuilding, which could tighten supply and lift prices.