my country's first "test water" reserve crude oil release

The State Bureau of Grain and Material Reserves recently issued an announcement stating that with the approval of the State Council, for the first time, it will organize the release of national reserve crude oil in phases and batches in a rotating manner

The State Bureau of Grain and Material Reserves stated that the implementation of the normalized rotation of national oil reserves is an important way to play the role of the reserve market

Since China started to build a petroleum reserve base in 2003, this is the first time that the country has put a reserve of crude oil on the market.

The first batch of reserve crude oil is about 7.

According to the "Announcement on Carrying out the First Batch of National Reserve Crude Oil Bidding Transactions in 2021" (hereinafter referred to as the "Announcement") issued by the State Bureau of Grain and Material Reserves, the National Petroleum Reserve Center will publish on September 24 in the National Reserve Petroleum Trading System Carry out the first batch of national reserve crude oil bidding transactions in 2021, with a total sales volume of approximately 7,383,600 barrels

It is worth noting that the product of this auction transaction is bonded crude oil, that is, crude oil stored in bonded oil depots without going through customs procedures under the supervision of the customs in China

Specifically, the first batch of reserve crude oil resources list includes 5 crude oil varieties including Qatar Offshore Crude Oil, Fortis Offshore Crude Oil, and Oman Crude Oil, all of which are stored in Dalian New Port and Changxing Island Port within the scope of Dalian City, Liaoning Province.

Jinlianchuang's fuel oil analysts carefully analyzed and pointed out: "Except for PetroChina, Sinopec and other main entities with state-owned trade import qualifications that do not have import quota restrictions, other private enterprises that are eligible to participate in bidding transactions must have the qualifications to import crude oil and the remaining remaining during the year Sufficient import allowances

　　Can stabilize the market to a certain extent

　　Regarding the initial release of reserve crude oil, the State Bureau of Grain and Material Reserves stated that it is mainly to ease the pressure on raw material prices for production-oriented enterprises
.

　　Data show that in the past year, international crude oil prices have continued to rise
.
The price of WTI crude oil futures oscillated from approximately US$36/barrel in October last year to the highest point of approximately US$76/barrel in July this year.
It is currently around US$72/barrel, and the price has doubled within one year
.

　　In the context of China's current dependence on crude oil for more than 70%, rising international oil prices have put pressure on the import side
.
According to data released by the General Administration of Customs recently, China imported 346 million tons of crude oil in the first eight months of this year, with an average import price of 3036.
3 yuan per ton, a year-on-year increase of 30.
7%
.

　　“Currently, international crude oil prices are relatively high, and China’s crude oil imports have always been large.
This has put pressure on the recovery and regulation of the entire macro economy
.
This time, the country can play a role in oil prices to a certain extent through the release of reserve crude oil.
The restraining and buffering effects have a beneficial effect on macro-control
.
" Professor Dong Xiucheng of the National Opening-up Research Institute of the University of International Business and Economics told reporters
.

　　Li Yunxu, a senior analyst at SDIC Anxin Futures, also said: “This year, the prices of commodities including coal, copper, aluminum and zinc have risen sharply
.
The public measures have sent some regulatory signals to the market
.
"

　　In addition to price factors, many interviewees told reporters that the release of reserve crude oil was also a "test of water" and exercise
.

　　“China’s petroleum strategic reserve began construction around 2005, and the first, second, and third phases have been basically completed and have formed a certain scale
.
Now it is necessary to rotate crude oil from the reserve pool through the rotation of crude oil in the petroleum storage facilities.
Pour it out, complete emergency drills, and give full play to the emergency role and market regulation role of reserve crude oil
.
In addition, through this release, you can also test the market's response to the release of reserve crude oil
.
" Resource and Environmental Policy of the Development Research Center of the State Council Researcher Guo Jiaofeng told reporters
.

　　Do not rule out the possibility of continuing to launch in large quantities in the later period

　　However, in the view of industry insiders, due to the small amount of crude oil reserves released for the first time, it will not have much impact on the market supply and demand structure and prices
.

　　"The total amount of the reserve crude oil auction is about 7.
3836 million barrels, for a total of about 1 million tons
.
Take the refining and chemical integration refinery with a design scale of 20 million tons/year as an example, when the operating rate is about 95%, it is equivalent to a refinery.
The consumption of about 20 days
.
The five types of crude oil launched this time do not rule out the bidding of multiple companies.
Therefore, compared with the total crude oil processing capacity of national refineries, the proportion of reserve crude oil released is limited, which is very important for domestic refineries.
The raw material supply structure of the factory has little effect
.
" Zhou Mi pointed out
.

　　As for the price, many interviewees also said that "it will not have much impact
.
"

　　"The rise in the prices of crude oil and other commodities is mainly related to the overall international economic environment.
We cannot really solve it by our own efforts
.
The state's reserve of crude oil can play a restraining effect to a certain extent.
, But it will not bring much impact
.
" Dong Xiucheng said
.

　　Li Yunxu also pointed out: "At present, the crude oil pricing power is mainly still in the international market.
The amount of reserve crude oil released this time is not large, and it is difficult to have a substantial impact on the price
.
From the perspective of supply and demand, the impact on the market is also relatively limited
.
However, From the perspective of policy guidance or market expectations, an expectation may be released to the market, that is, if oil prices continue to rise sharply in the future, the possibility of continuing to release large quantities of reserve crude oil will not be ruled out later
.
"

　　"When the announcement on the release of crude oil reserves was first issued two days ago, the international oil price made a correction, but the correction was very small
.
Because the amount we put was very small, it had little impact on the entire market
.
In addition, for refining and chemical companies, It doesn't have much impact either
.
" Guo Jiaofeng said
.
(Reporter Li Ling)

Transfer from: China Energy News