China Taps Commercial Oil Stockpiles to Help Weather Gulf…

The APAC region is facing a fuel crunch exacerbated by the ongoing Iran war, impacting various sectors. Key insights include: 1) Fishermen in Southeast Asia are struggling due to soaring fuel costs. 2) Pakistan is experiencing blackouts due to energy shortages linked to the conflict. 3) Governments are employing subsidies and diplomatic measures to combat oil and gas shortages. 4) Concerns are rising about the security of the Malacca Strait amidst the crisis. 5) Asia is increasingly relying on US crude to replace disrupted Middle Eastern supplies. Additionally, China is utilizing its commercial crude reserves to manage supply shocks while balancing refinery usage and fuel exports.

APAC Fuel Crunch:

Fishermen Struggle

Pakistan Faces Blackouts

Crisis Responses

Malacca Strait Anxieties

US Crude

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By Bloomberg News

June 10, 2026 at 4:57 AM UTC

Updated on June 10, 2026 at 10:32 AM UTC

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China has started tapping its commercial crude reserves to help offset the supply shock from the Iran war, although the world’s biggest oil importer is continuing to prioritize lower refinery use and fuel export limits to manage the fallout.

Inventory draws are expected to average about 1 million barrels a day in the coming months, according to estimates from Vortexa Ltd., Kpler and Energy Aspects. That’s about a third of the crude that China is no longer receiving since the conflict led to the near-total closure of the Strait of Hormuz, but still pales in comparison with the roughly 1.2 billion barrels the nation has in its commercial and strategic stockpiles.

Read Original at Bloomberg.com →

China Taps Commercial Oil Stockpiles to Help Weather Gulf Shock