China in Talks With Russia To Buy Oil For Its Strategic Reserves

China in Talks With Russia to Buy Oil for Strategic Reserves. © Reuters 

Investing.com/Bloomberg: China in Talks With Russia to Buy Oil for Strategic Reserves 

(Bloomberg) -- China is seeking to replenish its strategic crude stockpiles with cheap Russian oil, a sign Beijing is strengthening its energy ties with Moscow just as Europe works toward banning imports due to the war in Ukraine. 

Beijing is in discussions with Moscow to buy additional supplies, according to people with knowledge of the plan who asked not to be named as the matter is private. Crude would be used to fill China’s strategic petroleum reserves, and talks are being conducted at a government level with little direct involvement from oil companies, said one person. 

Oil has rallied this year following Russia’s invasion of its smaller neighbor, but the price of its own crude has tumbled as buyers step away to avoid damaging their reputation or being swept up in financial sanctions. That’s provided an opportunity for China to cheaply replenish its vast strategic reserves, which are typically tapped during times of emergencies or sudden disruptions. 

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WNU Editor: China's Covid restrictions are now being lifted, and everyone is expecting higher fuel prices as a result of this. So no surprise. China is looking for oil, and they are positioning themselves to get it at a good price from Russia. As for Russia, they are not going to say no to the Chinese and their money. 

The big loser will be Europe, who will now be forced to look for alternative sources for oil from other suppliers, and probably be forced to pay for it with a premium since it will have to be shipped by oil tanker.

China in Talks With Russia To Buy Oil For Its Strategic Reserves  

China in talks with Russia to buy oil for strategic reserves - Bloomberg News -- Reuters  

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China looks to Russia to replenish strategic oil reserves: report -- FOX News  

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