DATA & FIGURES
China's crude imports fell from 11.39 million barrels a day in February to 6.36 million by May, a drop of more than 44%. The country's use of electric vehicles is also on the rise, with half of its 1.3 million taxis running on batteries, and Didi's non-fossil fleet growing to 8 million cars last year. China's clean-tech exports, including solar panels, batteries, and EVs, hit a record in March, and the country is aiming to push non-fossil fuels to 25% of total energy consumption by 2030.
THE SCENARIO
The collapse of the U.S.-Iran cease-fire has led to a surge in oil prices, with the potential for further disruptions to global oil supplies. China's strategic preparations are helping the country shield itself from the impact of the crisis, but the situation remains volatile and uncertain.
DIRECT QUOTE
"China has been putting a floor under prices" — Janiv Shah, Rystad Energy
BBN INSIGHT
The Positive Side: China's preparations are helping to reduce its dependence on oil and shield itself from the impact of the crisis. The country's use of electric vehicles, pipelines, and clean-tech exports are all contributing to a reduction in its oil imports. The Negative Side: The collapse of the cease-fire and the potential for further disruptions to global oil supplies are likely to have a significant impact on oil prices, and China's preparations may not be enough to completely shield the country from the effects of the crisis.
MARKET REACTION
Oil prices have surged in response to the collapse of the cease-fire, with Brent crude jumping back above $85 a barrel. The price of WTI crude oil has also risen, and the market is likely to remain volatile in the coming weeks.