On its way down? Where next for China’s crude storage?

China's crude oil storage capacity growth is cooling down after a decade of massive growth. The buildup gave China the opportunity to buy crude oil cheaply in 2020 on the back of the low-price environment. With a COVID-19 recovery on the way and prices back at pre-pandemic levels, crude oil stocks have declined in 2021. In this insight we incorporated our latest view on China’s refinery operation and crude import, caused by change in crude price and government regulations. We will focus on how these factors’ influence China's crude oil storage capacity and stocks, specifically: 1. Is China's 2020 floating storage build-up resolved? 2. Latest update on China's estimated storage capacity and stock level outlook. 3. High run and low import, what has caused the reversing trend in China's stock build-up? 4. How long will the draw-down continue? Will China maintain “90 days” requirement from energy security perspective?