China builds crude stockpile in April

China has continued to significantly build its crude oil stockpiles in April, accumulating approximately 430,000 barrels per day, even as its crude imports dropped to a nearly four-year low and refinery processing slid to its lowest since August 2022. This contrasts sharply with the rest of the world, which is depleting oil reserves due to a 12 million bpd supply loss from the effective closure of the Strait of Hormuz. Analysts estimate China's total crude stockpile to be between 1.2 billion and 1.5 billion barrels. The drop in refinery processing is attributed to China's unofficial restrictions on refined product exports, which also fell to a decade low. The market is now watching China's future actions, particularly given the uncertainty surrounding a peace agreement between the United States and Iran, which could impact the re-opening of the Strait of Hormuz. China has the option to further constrain imports or boost refinery processing and fuel exports to capture elevated margins and assist fuel-importing nations like Pakistan and Bangladesh.