Will China play a role in ending Iran war?

[Michael]

Oh no, Sir, no means has crude oil become less relevant. HDPE and HDPP being the bye products of crude oil refining are required as ever let alone the demand of crude oil itself

Many people do not fully understand China's oil situation. Yes, China is the world's largest oil importer. Consequently, when this war triggered a global oil crisis, many assumed that China would suffer a massive impact.

But, what many failed to notice is:

1. China is itself a major oil producer. Although its current output cannot match that of the global top three—the United States, Russia, and Saudi Arabia—it is comparable to the production levels of the "second tier" of nations, such as Canada, Iraq, Iran, and the UAE. This is because China began regulating its domestic oil extraction years ago, choosing to keep the oil in the ground rather than accelerating its extraction.

2. China holds the world's largest national strategic petroleum reserve, exceeding the combined reserves of the countries ranked second through ninth. To date, China continues to rapidly expand its national strategic petroleum reserves.


3. China is currently the most successful country in terms of energy transition. Its domestic demand for oil has dropped to an extremely low level. ------ For the petrochemical industry, oil from the Middle East is not the optimal choice.

For China, the current global oil crisis is really not a major issue.