New data from the US Energy Information Administration (EIA) reveals that China strategically accumulated enormous crude oil stockpiles throughout 2025, reaching nearly 1.4 billion barrels by December of that year. This unprecedented buildup provided Beijing with a critical energy advantage as geopolitical tensions escalated, culminating in the Iran war and the subsequent disruption and blockade of the vital Strait of Hormuz.
Strategic Accumulation Ahead of Conflict
According to the EIA, China added an average of 1.1 million barrels per day to its strategic oil inventories in 2025. This aggressive stockpiling continued into early 2026, just prior to the outbreak of the Iran conflict in late February. The ability to draw on such substantial reserves has proven invaluable in navigating the turmoil within the global energy ecosystem.
Beyond oil, China also commands more than 70 percent of global supply chains for crucial green technologies, including solar, wind, batteries, and electric vehicles. This comprehensive control further bolsters its strategic position during periods of international instability.
Drivers Behind the Stockpiling Surge
A February paper from the Oxford Institute for Energy Studies identified several key factors driving China's surge in oil stockpiling during 2025. These included:
- Relatively low global oil prices, influenced by softer demand.
- Rising geopolitical risks, particularly disruptions linked to sanctions on major oil producers like Russia, Venezuela, and Iran.
- A new domestic energy law that mandated companies to maintain higher reserve levels.
EIA's Estimation Methodology
China does not publicly report its oil inventory data. To estimate the totals, the EIA utilized a comprehensive approach, drawing on data from imports, exports, refining activities, and oil inventory information from both third-party and official sources. This analysis considered both government-held and commercial inventories as strategic reserves.
This methodology is based on reports indicating that since 2024, China’s national oil companies have been directed to add emergency oil to their commercial stockpiles, effectively creating a secondary layer of strategic reserves. Using this method, the EIA estimated China's government-held inventories to be approximately 360 million barrels in December 2025. This figure is comparable to the nearly 414 million barrels held in the US Strategic Petroleum Reserve (SPR) during the same period.
Global Reserve Context
In a separate development, the International Energy Agency (IEA) coordinated the largest-ever release of oil reserves on March 11, making up to 400 million barrels available to the market. China, however, was not part of this coordinated release as it is not a member of the IEA.
The US SPR, with a capacity of about 714 million barrels, stood at roughly 413 million barrels in December 2025 and has since dipped to around 409 million after the March release. The US reserve remains significantly below its capacity following a record drawdown in 2022 after Russia’s invasion of Ukraine, with officials gradually refilling it as market conditions allow for lower prices.