The Strategist

China will release reserve oil to market because of rising prices

09/10/2021 - 05:53

China's State Reserve Administration has announced that it will release crude oil from its national reserves to the market to ease the burden on businesses due to rising commodity prices, Xinhua news agency reported Sept. 9.

Department of Energy via flickr
Department of Energy via flickr
The National Food and Strategic Stocks Administration said that the release, which will be carried out in batches, is mainly aimed at Chinese enterprises that practice the integration of refining and petrochemicals.

Since the beginning of this year, wholesale commodity prices have risen due to factors such as the spread of COVID-19 overseas and a supply-demand imbalance that puts pressure on medium- and small-sized firms.

Data from China's National Bureau of Statistics showed that China's producer price index, which measures the cost of goods at the factory gate, rose 9.5% year-over-year in August, faster than the 9% year-over-year increase recorded in July.