Kingdom

2024

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<p><strong>Recent data show that China is strategically reinforcing its oil reserves. For several months, the Middle Kingdom has been taking advantage of its partnership with Russia for this purpose. Some think that this is a way for China to expand its influence within BRICS.</strong></p>
<h2 id="h-the-enhanced-oil-hoarding-by-the-chinese-brics-member">The Enhanced Oil Hoarding by the Chinese BRICS Member!</h2>
<p><a href="https://www.cointribune.com/brics-entre-aspirations-dexpansion-et-risques-de-division/" target="_blank" rel="noopener noreferrer nofollow">China</a>, an important member of BRICS, is taking advantage of low crude oil prices to strategically accumulate additional oil reserves. This is according to consistent sources which indicate that the country is taking this opportunity due to the sanctions imposed on Russia.</p>
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<p>As a result of these sanctions, <a href="https://watcher.guru/news/brics-china-stockpiling-1-39-million-barrels-of-oil-every-day" target="_blank" rel="noopener noreferrer nofollow">China has been buying cheap crude oil from its BRICS counterpart,</a> forced to sell its resources at reduced rates. This movement started in October 2023 and has favored China.</p>
<p>Indeed, this maneuver has led to the Chinese yuan becoming the most traded currency in Russia for trade-related activities, with transactional repercussions for the Chinese giant that has accumulated a substantial stockpile of six months due to the increase in its purchases of Russian oil.</p>
<p>While China notably refrains from making its strategic oil reserves public, questions are emerging. Some analysts suspect this influential member of BRICS of practicing some strategic hoarding. As evidence, in December 2023 alone, China managed to accumulate a staggering 1.39&nbsp;million barrels of oil per day. A significant escalation from the 20,000&nbsp;barrels per day stored in November.</p>
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     <p lang="en" dir="ltr">BRICS: China Stockpiling 1.39 Million Barrels of Oil Every Day<a href="https://t.co/FFFkcJWSsV" rel="noopener noreferrer nofollow">https://t.co/FFFkcJWSsV</a><a href="https://t.co/zG0IJMaLu4" rel="noopener noreferrer nofollow">https://t.co/zG0IJMaLu4</a></p>— crimsonbearz (@crimsonbearz) <a href="https://twitter.com/crimsonbearz/status/1749857294215528804?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 23, 2024</a>
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 <figcaption class="wp-element-caption"><em>China, an influential BRICS member, has been accumulating a significant quantity of oil since October 2023</em>
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<h2 id="h-a-far-from-innocuous-chinese-approach">A Far from Innocuous Chinese Approach?</h2>
<p>Throughout the year 2023, China has cumulatively amassed an average of 760,000&nbsp;barrels of crude oil per day. According to an oil trader, China is strategically sourcing oil from all around the world, with the exception of the United States where freight rates are exorbitant.</p>
<p>This choice is no coincidence, as with the rebound in oil prices and the strengthening of demand, China has the opportunity to exploit its strategic oil reserves by selling them to other countries, thus making substantial profits.</p>
<p>But ultimately, this approach seems strategically linked to the BRICS’ intent to end the dominance of the dollar. Indeed, some analysts suggest that China, along with other BRICS members, could exert influence in this direction.</p>
<p>BRICS could compel countries to settle oil payments in Chinese yuan rather than US dollars. This could position the Middle Kingdom as a key player in the global oil dynamic. Not to forget that the country has been suspected of wanting to strengthen its role within BRICS.</p>
<p>As a reminder, the alliance is actively working towards the issuance of a common currency. <a href="https://www.cointribune.com/en/brics-faces-a-historic-turning-point-gold-or-crypto-for-their-common-currency/" target="_blank" rel="noopener noreferrer nofollow">A currency whose digital possibilities, especially in crypto,</a> have been discussed throughout the past months.</p>
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BRICS: China’s subtle strategy to disrupt the global economic order

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