China’s role as oil buffer stock manager

The country’s intervention in global oil markets to stabilise prices could last well into 2026

Forty years ago, the world had formal programmes for commodity price stabilisation. One of the most well-known, the 1954 International Tin Agreement (ITA), kept tin prices under control for more than three decades by creating a ‘buffer stock manager’ for the metal. That manager, the International Tin Council (ITC), focused on preventing excessive price fluctuations and achieving a reasonable degree of price stability. Today, China has taken on a similar role behind the scenes, acting as a buffer stock manager for crude oil to keep prices at $60–70/bl. So far, this strategy is working. Whether China can continue to stabilise prices will depend on its ability to add substantial amounts of oil