[Asia Economy Reporter Naju-seok] As international oil prices have plunged, the Chinese government has begun expanding its strategic petroleum reserves.
According to Bloomberg on the 2nd, as international oil prices have fallen more than 60% since the beginning of the year, the Chinese government has started securing strategic petroleum reserves. However, the Chinese government has not disclosed the overall scale or other details.
According to an anonymous source, the Chinese government has decided to utilize financial products such as options to secure domestic oil reserves amid the low oil price situation. Additionally, China plans to encourage the private sector to also stockpile crude oil.
China is initially securing an amount equivalent to 90 days of net crude oil imports, and when combined with commercial stockpiles, it is reported to plan to secure a total amount equivalent to 180 days.
Furthermore, China is reportedly planning to construct additional oil storage facilities for strategic petroleum reserves. The Chinese government is undertaking the construction of additional oil storage not only to secure strategic reserves in preparation for emergencies but also to respond to domestic economic revitalization efforts due to the novel coronavirus infection (COVID-19).
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