# China’s strategic crude reserve buy extends oil’s rebound

> Oil prices surged more than 12% after China instructed government agencies to start buying cheap crude for its strategic reserves. The purchases came after oil had plunged 66% in the first three months of 2020 amid collapsing demand from the coronavirus. Dated Brent was assessed at $15.135 a barrel, its lowest level since at least 1999.

- Date: 2020-04-02 · published 2020-04-02T12:00:00.000Z
- Category: policy · region China · magnitude medium
- Page: https://feedsoft.ai/events/6564-china-s-strategic-crude-reserve-buy-extends-oil-s-rebound
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Chinese state stockpiling absorbs surplus crude and supports energy prices, which feed through to diesel and freight costs for feed producers. Higher crude also tends to lift biofuel-linked demand for vegetable oils and grains.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-04-02 | 1 | +35.2% | 5.0 | China's instruction to buy cheap crude for strategic reserves added demand-side support and rebound momentum from very depressed levels (Dated Brent at lows). |
| WTI | 2020-04-05 | 5 | +72.7% | 7.0 | China's strategic reserve buying added demand support and extended the rebound from extremely depressed prices. |
| BRENT | 2020-04-06 | 5 | +40.0% | 4.8 | China's strategic reserve buying added demand-side support to the rebound from record lows. |
| WTI | 2020-04-02 | 1 | +19.9% | 3.1 | China's instruction to buy cheap crude for strategic reserves added demand-side support to the rebound from deeply oversold levels. |
| BRENT | 2020-04-07 | 5 | +44.4% | 4.9 | China's strategic reserve buying added demand support and rebound from extreme lows (Dated Brent $15), contributing to the bounce. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2026-03-11 | [Crude prices close higher IEA announces historic oil reserve release](https://feedsoft.ai/events/20328-crude-prices-close-higher-iea-announces-historic-oil-reserve-release.md) | +14.9% | +14.3% |
| WTI | 2017-12-01 | [World’s crude oil producers extend cuts on output through 2018](https://feedsoft.ai/events/67411-world-s-crude-oil-producers-extend-cuts-on-output-through-2018.md) | -1.5% | +5.3% |
| WTI | 2024-05-02 | [Oil alliance OPEC+ extends collective crude production cuts into 2025](https://feedsoft.ai/events/29653-oil-alliance-opec-extends-collective-crude-production-cuts-into-2025.md) | -0.1% | -1.9% |
| WTI | 2023-08-31 | [Crude Rallies on Report Russia Will Extend Its Export Cuts](https://feedsoft.ai/events/34757-crude-rallies-on-report-russia-will-extend-its-export-cuts.md) | +6.4% | +12.3% |
| WTI | 2021-11-04 | [OPEC+ Meeting Ends: Cartel Won't Produce Extra Crude \| OilPrice.com](https://feedsoft.ai/events/43986-opec-meeting-ends-cartel-won-t-produce-extra-crude-oilprice-com.md) | +0.5% | -17.6% |
| BRENT | 2026-03-11 | [Crude prices close higher IEA announces historic oil reserve release](https://feedsoft.ai/events/20328-crude-prices-close-higher-iea-announces-historic-oil-reserve-release.md) | +19.2% | +21.1% |
| BRENT | 2017-12-01 | [World’s crude oil producers extend cuts on output through 2018](https://feedsoft.ai/events/67411-world-s-crude-oil-producers-extend-cuts-on-output-through-2018.md) | -2.0% | +4.9% |
| BRENT | 2024-05-02 | [Oil alliance OPEC+ extends collective crude production cuts into 2025](https://feedsoft.ai/events/29653-oil-alliance-opec-extends-collective-crude-production-cuts-into-2025.md) | -0.6% | -2.2% |

## Sources

- worldoil.com: https://www.worldoil.com/news/2020/4/2/china-s-strategic-crude-reserve-buy-extends-oil-s-rebound/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.