Oil prices rise as hostilities worsen in the Middle East
“Although there is demand destruction, there will still be incremental crude oil imports that China will use to fill its strategic petroleum reserves.” — June Goh, Senior Analyst at Sparta Commodities
- Expert: June Goh (Senior Oil Analyst, Sparta)
- Publication: Reuters
- Market Focus: Crude Oil, China Import Demand, Strategic Petroleum Reserves
- Geographies: China, Asia, Middle East/Gulf
In a recent analysis for Reuters, Sparta’s Senior Analyst, June Goh, flags that China’s demand destruction won’t stop it from buying incremental crude to top up its strategic petroleum reserves. Goh estimates structural shifts, including EV adoption and truck electrification, could settle China’s monthly imports at 8-9 million bpd once Gulf supply normalises, but a renewed stockpiling campaign could lift that back to a 9.5-11 million bpd range. The swing between those two scenarios hinges largely on Brent falling back below $70, the level analysts say could trigger Beijing to resume buying. Traders should watch Brent’s approach to that $70 threshold and Beijing’s fuel export quota decisions, both of which will shape how much of China’s import collapse proves permanent.
[Read June Goh’s full commentary in Reuters]
About the Author
June Goh | Senior Oil Analyst, Sparta Commodities
June is a senior oil market analyst at Sparta specialising in global crude trade flows and refining economics across Asia and Europe. Her analysis is regularly cited by Bloomberg, the Financial Times, and Reuters. With a significant following in the energy community on X (@JuneGoh_Sparta), June’s insights are a staple for institutional traders navigating regional market shifts.
Connect: LinkedIn / X
About Sparta
Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.
To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com
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