The Middle East conflict has disrupted more than 1 billion barrels of oil supply, but China's massive strategic crude stockpile helped offset the shock by sharply reducing imports, preventing oil prices from surging even higher.
Countries are now racing to build or replenish strategic petroleum reserves, with the IEA planning to refill the 400 million barrels it released during the crisis.
This wave of reserve rebuilding could create a major new source of oil demand, supporting crude prices once the Middle East crisis fully subsides.
China, which has been buying oil cheaply from Iran, Russia, and Venezuela for years, played an instrumental role in keeping the world from experiencing skyrocketing oil prices during the crisis.
Now, as the world seeks to replenish strategic reserves, demand for crude oil is likely to rise, potentially impacting international prices.
