China buying up oil
It looks like China is hoarding oil, 5.57 million barrels a day, almost a record and 8.7% more than last year. Since the volume is exceeding China’s refining capacity, the conclusion is: China is filling up its strategic petroleum reserves in order to reach its goal of 90 days of supply, up from 40 days now. In comparison US stockpiles can cover more than 90 days. This development is tied to the unsecure situation in the Middle East. Another reason is that new storage facilities need to be filled. Crude-oil imports in 2012 are expected to increase 13% over 2011. In 2011 China got 11% of its oil imports from Iran. China is working on expanding storage facilities. Eventually China wants to be able to store 500 million barrels by 2020.