Sechin says China has taken the initiative from OPEC in the oil market
Igor Sechin, the head of the Russian oil company Rosneft, said at an economic forum in Vladivostok that China has taken the initiative from OPEC in influencing the global oil market. In his view, Beijing's purchasing behavior in spring and summer contributed to market stabilization.
As OilPrice reports, Sechin called China the world's key flexible oil buyer. He claims that the country has transformed from a major consumer and importer into an active market participant.
Statements on oil imports
According to Sechin, China reduced crude oil imports by approximately 5.5 million barrels per day this year, which, in his view, helped stabilize the global market without joining cartels. He also said that in June China's purchases may have been about 40% lower than before the war mentioned in the article began.
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OilPrice notes that before the start of this war, China had accumulated up to 1.4 billion barrels of oil in commercial and strategic reserves, according to the publication's estimate. According to the article's author, these reserves enabled Beijing to reduce imports after the closure of the Strait of Hormuz and the price spike. The publication also writes that China withdrew from the spot market during the Middle East crisis, partly offsetting the decline in supply by reducing demand for imports.
Reserves and OPEC
Sechin believes that further expansion of strategic and commercial reserves will strengthen China's role in the energy market. He also said that OPEC's influence has weakened due to a reduction in the number of the organization's members.
Separately, OilPrice reports that the United Arab Emirates left OPEC on May 1 to pursue its own national interests.
