(Bloomberg) China targets an initial auction of as much as 7.38 million barrels of crude on September 24, the first sale of its kind seeking to lower prices.
The sale of China’s strategic oil reserves aims to tame the rising raw material prices, with commodities that include natural gas and coal also surging.
Companies will be required to comply with national refinery industry policy and possess a significant import quota to participate in the auction. Buyers will need to have a reputable credit rating and will buy crude only for their own use.
The volume that China aims to sell as crude is still below what it imports in a single day. Grades that include Forties, Qatar Marine, Oman, Murban, and Upper Zakum are targeted in the sale.
China has accumulated up to 220-million-barrel reserves of crude over a decade. It currently ranks as the top crude importer in the world.
CL1! is up +1.16%.
