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China has quietly amassed the world’s largest stockpile of crude oil.
This is no mean feat for a country that is also the globe’s biggest importer of energy.
It brings a fresh dynamic to Beijing’s relations with the United States, as Premier Xi Jinping prepares to host President Donald Trump for a high-stakes state visit on May 14 and 15.
There is already controversy. China’s Commerce Ministry banned Chinese companies from complying with U.S. sanctions on small refineries that purchase Iranian crude. The so-called “teapot refineries” have been encouraged by Chinese authorities to import Iranian oil because they are seen as immune to foreign sanctions, according to Teneo. The research house warns that China’s non-compliance with the sanctions could prompt Washington to launch a second round of restrictions to clamp down on the Sino-Iranian trade.
