China's crude oil reserves are in trouble
Yesterday, the June crude oil futures on the New York Mercantile Exchange settled at $118.30 per barrel, up 0.23 dollars or 0.19% from the previous day. Meanwhile, the ICE-6 Brent crude oil futures fell by 0.38 dollars to $115.57 per barrel, marking a slight decline of 0.33%. Despite this dip, prices are still hovering near the $120-per-barrel threshold. Rising global oil prices have created challenges for domestic refining companies, exposing them to the risk of market inversion. At the same time, China’s long-planned crude oil reserves have become more relevant than ever.
Experts suggest that if China purchases oil now, it could further drive up global prices, but delaying purchases may make it harder to meet reserve targets as prices continue to climb. The $130-per-barrel mark is seen as imminent, with many in the industry predicting that $120 will soon be surpassed. Fan Xiaoping, Secretary General of the Storage and Transportation Sales Committee of the Guangdong Provincial Petroleum Association, points to ongoing geopolitical tensions and the approaching summer season as key factors that could push prices even higher. A drop below $130 might not happen until the second half of the year or into next year.
This year began with oil prices breaking through the $100 mark and eventually exceeding $110. Earlier predictions from some investment banks had expected prices to stay within the $80–$100 range. However, the reality has been quite different. In China, while the major oil companies face risks from market inversion, the country’s strategic crude oil reserves are also under pressure. By 2010, China aimed to build reserves sufficient for about 30 days. The first phase of the Strategic Petroleum Reserve Plan includes four onshore storage facilities in Zhejiang, Shandong, and Liaoning, with a total capacity of 16 million cubic meters. Although some crude has been stored, the target remains far off.
The operation of these reserves remains a topic of debate. Some experts argue that accelerating purchases would help preserve value amid rising oil prices and a weakening U.S. dollar. Yao Daming, Director of the Oil and Gas Division of the Guangdong Oil & Gas Merchants Association, supports this view, suggesting that participating in the international oil market could improve China’s influence over pricing. He recommends learning from successful domestic futures companies to enhance risk management and gradually increase China’s voice in global energy markets.
However, Fan Xiaoping warns that with oil import dependence reaching 56%, purchasing more crude now could drive prices even higher, increasing the cost of reserves. He suggests that China should focus on reducing demand first—through alternative energy development, better coordination between transportation and petroleum sectors, and sending signals to the market that it is working to lower its reliance on oil. He believes waiting for prices to drop to the $70–$80 range before making purchases would be a smarter move.
Flights Screw Co-kneader PVC Compounding Extruder System
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--Typical highlights and benefits of XINDA WKS 4-flight Co-kneader:
--Optimized intake section: No forcing feeding, large inlet opening, effective backward degassing, -improve material transport
--4 row of flights increase shear surface, produce more shear energy
--Improve conveying stability by overlapping flights
--No open gap between flights and pins
| Model | WKS-100 | WKS-120 |
| Co-kneader Screw Dia. | 100 | 120 |
| L/D Ratio | 15 | 15 |
| Max. Screw Speed | 500 RPM | 500 RPM |
| Main Motor Power | 160-200 KW | 220-280 KW |
| Second-stage Screw Dia. | 200mm | 220mm |
| Second-stage Screw L/D | 7 | 7 |
| Max. Screw Speed | 60 RPM | 60 RPM |
| Second-stage Motor Power | 55-75 KW | 90 KW |
| Reference output (kg/h) | 1000-1500 | 1500-2000 |
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