Tag: Stockpiling

While the World Scrambles for Oil, China Sits on Full Tanks

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While the United States and Iran haggle over reopening the Strait of Hormuz and restoring oil exports from the Persian Gulf, China, the world’s largest oil importer, is not expected to quickly ramp up purchases from the region. If normal traffic through the strait fully resumes in the coming weeks, numerous tankers carrying oil bound for China that have been stranded in the Persian Gulf during the war would be on the move again. Their eventual arrival at Chinese ports is likely to produce a temporary surge in deliveries. China…

China Moves the Price of Oil, Even When It Buys Less

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After the war in Iran cut off a fifth of the world’s oil supply, oil prices jumped, at one point reaching nearly $120 a barrel. But they didn’t spike higher, even though some analysts warned ominously of $200 oil, and prices have since come down. At more than $80 a barrel, oil is expensive. But it could be a lot higher. One major reason was China. The biggest oil buyer in the world, China has kept a lid on prices by rapidly reducing the amount of oil it imports. Before…

The World Is Draining Oil Reserves, Raising Pressure for a Peace Deal

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The world is quickly depleting its stores of oil, putting more pressure on President Trump to reach a deal with Iran that would quickly get more fuel flowing out of the Persian Gulf. Vast stockpiles of oil, gasoline and other fuels have helped fill the hole in global energy supplies created by the U.S.-Israeli war with Iran. But those reserves, which companies and governments stash in giant steel storage tanks and underground salt caverns, are running low in some places. This week, U.S. government stockpiles were poised to hit their…

Iran War Has Drained U.S. Supplies of Critical, Costly Weapons

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Since the Iran war began in late February, the United States has burned through around 1,100 of its long-range stealth cruise missiles built for a war with China, close to the total number remaining in the U.S. stockpile. The military has fired off more than 1,000 Tomahawk cruise missiles, roughly 10 times the number it currently buys each year. The Pentagon used more than 1,200 Patriot interceptor missiles in the war, at more than $4 million a pop, and more than 1,000 Precision Strike and ATACMS ground-based missiles, leaving inventories…

What the Iran War Means for the U.S.-China Relationship

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The war in Iran is threatening a fragile détente between China and the United States, with the two powers now moving to postpone a much anticipated summit meeting after President Trump demanded that China send warships to the Gulf. Mr. Trump on Monday said that he had requested that his visit to Beijing at the end of the month be postponed because of the war. Just a day earlier, he threatened to delay the meeting if China did not contribute warships to end Iran’s de facto blockade of the Strait…

Saudi Arabia to Extend Oil Production Cut by a Month

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In a move to support oil prices, Saudi Arabia said Thursday it would extend its decision to cut oil production by one million barrels a day for another month, to September. Oil prices have recovered strongly in recent weeks partly because of smaller stockpiles of fuel in the United States, but China’s tepid economic recovery has kept oil prices under pressure for most of the year. Saudi leaders need oil prices to stay high because the money from energy sales pays for government spending and ambitious plans to diversify the…

U.S. Aims to Turn Taiwan Into Giant Weapons Depot

Chin@Strategy

WASHINGTON — American officials are intensifying efforts to build a giant stockpile of weapons in Taiwan after studying recent naval and air force exercises by the Chinese military around the island, according to current and former officials. The exercises showed that China would probably blockade the island as a prelude to any attempted invasion, and Taiwan would have to hold out on its own until the United States or other nations intervened, if they decided to do that, the current and former officials say. But the effort to transform Taiwan…