According to BOE Report, China’s vast crude oil stockpiles could insulate it from the energy price surge following Israel-US attacks on Iran, while other regions face potential inflation. China built surplus crude inventories of 1.13 million barrels per day in 2025, with imports hitting a record 13.18 million bpd in December as refiners bought discounted Russian and Iranian oil.
The country can now either cut imports to weather high prices or maintain refinery output to export fuel products as global prices spike. Brent crude jumped 7.3% Monday to $77.77 per barrel, a one-year high.
What It Means for Subcontractors
- Fuel costs could rise significantly for US and Canadian field operations as global oil prices surge, pressuring project margins and trucking expenses
- China may flood markets with refined products if Middle East supplies stay disrupted, potentially creating pricing volatility for diesel and gasoline used in field operations
- Contractors should consider fuel hedging strategies or escalation clauses in new contracts as geopolitical tensions drive energy price uncertainty
