Qingdao Port crude oil terminal in Shandong province
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
Also in this section
29 April 2026
Trafigura’s $1b prepayment agreement confirms African resource holders’ renewed interest in oil-backed financing deals as they look to capitalise on high oil prices
29 April 2026
The UAE’s departure from the oil producers’ group was a surprise to many, but the move can be traced back to a single point five years ago
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
