China creates two-tier oil dynamic
There is a bifurcation in the global oil market as China’s stockpiling contrasts with reduced inventories elsewhere
The oil-exporting nations are boosting production. OPEC forecasters see a need for increased output to meet projected consumption and refill inventories. Other analysts seem to agree. The problem, however, is that the global market has split into two parts. Companies in one country, China, are aggressively building inventories on government orders. Firms elsewhere are striving to shed stocks out of a fear that oil-exporting countries cannot or will not maintain market stability. Oil prices will stay at current levels if the Chinese buy enough, and fall otherwise. This raises a huge issue. Chinese buying has held crude prices above $60/bl. Market-watchers should be more concerned than they ar
Also in this section
17 February 2026
Eni’s chief operating officer for global natural resources, Guido Brusco, takes stock of the company’s key achievements over the past year, and what differentiates its strategy from those of its peers in the LNG sector and beyond
16 February 2026
As the third wave of global LNG arrives, Wood Mackenzie’s director for Europe gas and LNG, Tom Marzec-Manser, discusses with Petroleum Economist the outlook for Europe’s gas market in 2026
13 February 2026
Artificial intelligence is pushing electricity demand beyond the limits of existing grids, increasing the role of gas and LNG in energy system planning as a fast, flexible solution
13 February 2026
Panellists at LNG2026 say demand growth will hinge less on the level of global supply and more on the pace of downstream buildout, policy clarity and bankable market frameworks
