China plans to buy oil to replenish the state reserve now prices are low. Bloomberg writes this on the basis of insiders. This step may support the price of oil somewhat, because China is the largest oil importer in the world.
Oil prices have fallen by 60 percent this year due to a price war unleashed by Saudi Arabia. They decided to lower the asking price and to significantly increase production after Russia blocked the extension of a deal with oil cartel OPEC for production restrictions. At the same time, there was significantly less demand for oil due to the corona crisis, resulting in much less speed for aviation and industry.
In addition to its own state oil storage, Beijing would also like to rent commercial storage space for the state reserve. In this way, you can take advantage of the low prices on a larger scale.
Oil prices rose on Thursday morning as a result of reports. The price of a barrel of American oil rose 7 percent to $ 21.74. Brent oil became 8.9 percent more expensive at $ 26.93 a barrel.