Plummeting Over 50%! Amid This Epic Collapse, China Is "Buying the Dip" in Crude Oil

This time, Saudi Arabia’s key discount customers include China, and it has announced an unrestricted purchase policy for one Indian oil company and two Chinese petrochemical enterprises. It is thus no wonder that the China Association of the National Shipbuilding Industry stated outright that the global crude oil price plunge is nothing short of a windfall—akin to gold bricks falling from the sky. Industry insiders estimate that for every $10 drop in crude oil prices, Chinese enterprises and residents collectively save RMB 107 billion annually. A Broader Strategic Goal: China’s Petroleum Strategic Reserves With 84 massive oil tankers now collectively setting sail toward the Gulf to stock up on petroleum, China’s motivations extend well beyond meeting routine industrial manufacturing needs—to rapidly replenish its national petroleum strategic reserves. Reviewing China’s history of large-scale procurement over the past decade reveals a consistent pattern: whenever international oil prices plummet, China accelerates purchases for its strategic petroleum reserves. For instance, during the low-price period of 2015–2016, the pace of strategic reserve injections markedly increased. According to Zhongda Futures, it is generally believed that China opens the window for building its strategic crude oil reserves when international oil prices fall below USD 40 per barrel. By international convention, a country requires approximately 90 days’ worth of petroleum reserves to ensure normal national operations—but China’s strategic reserves still fall short of this benchmark. China began establishing petroleum strategic reserves relatively late—around the early 21st century, following its accession to the WTO. In 2004, China launched large-scale construction of petroleum reserve bases. To date, it has established crude oil reserve bases in Dalian, Huangdao, Zhenhai, and Zhoushan, and plans to complete Phase III of its crude oil reserve base construction by 2020—adding 28–85 million tons of crude oil storage capacity. Moreover, according to the “Medium- and Long-Term National Petroleum Reserve Plan (2008–2020),” China aims to build a total strategic reserve equivalent to 100 days of net petroleum imports by 2020. In September 2019, the National Energy Administration reported that commercial and strategic crude oil inventories stood at roughly 80 days of net imports—still about 20 days (approximately 25.7 million tons) short of the target. It is therefore highly likely that, capitalizing on the current international oil price collapse, China will significantly ramp up crude oil imports in 2020 to reach its targeted reserve level. Industry insiders estimate that, assuming no constraints from infrastructure or other bottlenecks—including commercial inventory absorbed in March and newly completed strategic reserve facilities—China theoretically possesses import capacity for roughly 200 million barrels of crude oil. Oil Collapse: Winners and Losers Facing oil prices slashed in half, China has already sprung into action—calmly purchasing cheap crude oil to top up its reserves and substantially reduce import costs. Additionally, on the evening of March 19, U.S. Treasury Secretary Steven Mnuchin announced plans to buy $10 billion—or even $20 billion—worth of crude oil during this low-price period. Yet beneath the oil price collapse, not everyone is celebrating. Foremost among the losers is Saudi Aramco (2222), the world’s largest oil company, whose stock price has plunged continuously—erasing over RMB 128.74 billion in market value within just nine trading days, equivalent to Kweichow Moutai’s entire market capitalization. Meanwhile, U.S.-listed global energy giants have suffered even more devastating losses: their share prices have collapsed consecutively—described by some as “bankruptcy-level crashes.”

In-Depth Market Research Report on China’s Propanol Industry, 2015–2025: Development Prospects and Analysis

Table: BASF Company Profile and Latest Developments Table: BASF Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Eastman Chemical Company Profile and Latest Developments Table: Eastman Chemical Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: ExxonMobil Chemical Company Profile and Latest Developments Table: ExxonMobil Chemical Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Solvay Group Company Profile and Latest Developments Table: Solvay Group Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: LyondellBasell Company Profile and Latest Developments Table: LyondellBasell Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Mitsui Chemicals Company Profile and Latest Developments Table: Mitsui Chemicals Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Dow Chemical Company Profile and Latest Developments Table: Dow Chemical Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: LG Chem Company Profile and Latest Developments Table: LG Chem Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Royal Dutch Shell Company Profile and Latest Developments Table: Royal Dutch Shell Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Carboclor S.A. Company Profile and Latest Developments Table: Carboclor S.A. Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: ISU Chemical Company Profile and Latest Developments Table: ISU Chemical Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Lee Chang Yung Chemical Industrial Co., Ltd. Company Profile and Latest Developments Table: Lee Chang Yung Chemical Industrial Co., Ltd. Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Sasol Limited Company Profile and Latest Developments Table: Sasol Limited Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Tokuyama Corporation Company Profile and Latest Developments Table: Tokuyama Corporation Propanol Revenue, Price, and Profit Analysis, 2015–2020 Table: Zhejiang Xinhua Chemical Co., Ltd. Company Profile and Latest Developments Table: Zhejiang Xinhua Chemical Co., Ltd. Propanol Revenue, Price, and Profit Analysis, 2015–2020 Research Methodology 1. Data Mining Collect original information on the industry’s supply chain, monetary flows across different products and end uses, a database of market participants, and the nature and scope of the industry. 2. Data Analysis This step involves analyzing and mapping all information obtained in the previous step. It also includes carefully examining discrepancies observed across various data sources and ultimately selecting appropriate data for estimation and forecasting. 3. Market Estimation and Forecasting Employ both “top-down” and “bottom-up” approaches to verify data accuracy, reasonably estimate market size, and forecast market trends.

Sasol Ltd. (SSL) Stock Price Forecast and Target Prediction for 2027

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Analysts project an average price target of 14.62 for Sasol Ltd. by 2027, according to TradingView data, though specific maximum or minimum estimates remain undisclosed.

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