Oil price drop: China accumulated record volumes of raw materials.

In 14 months, China increased its oil purchases to the highest levels. According to Reuters, stockpiles reached their highest since June 2023, when 2.1 million barrels were added per day. This is a significant increase compared to the 280,000 barrels added in July.

During this period, 1.85 million barrels per day were added to commercial and strategic reserves. However, it is worth noting that this stockpile replenishment was due to accumulation rather than a recovery in fuel consumption.

Interestingly, China's oil refiners were likely interested in purchasing oil during this period. Therefore, imports in August and September may be significantly higher compared to previous months of this year.

Global Brent oil futures reached their highest level this year - $92.18 per barrel - on April 12, then started to drop to a low of $75.05 on August 5.

Source: Economic Truth