China eyes boosting state oil reserves after crash

The historic crash of oil prices is prompting the Chinese government to consider buying more crude for state reserves, according to people with knowledge of the matter, Report informs via RIA Novosti. 

Top planning officials are consulting with Chinese government agencies and state-owned energy companies about the possibility of bolstering the nation’s strategic stockpiles with cheap oil, the people said, asking not to be identified because the matter is confidential.

Beijing is yet to decide whether to proceed, they said.

Prices are swinging wildly as Saudi Arabia and Russia engage in an intensifying fight for market share after the collapse of the OPEC+ coalition last week prompted a supply free-for-all.

The Saudis have slashed their official prices and pledged to supply a record 12.3 million barrels a day next month, more than 25% higher than last month’s production. Moscow has responded by saying it has the ability to boost production by 500,000 barrels a day.