China taps reserves to delay oil market supply shortage

```htmlChina's supply and demand balance indicates that the Chinese government is drawing down oil inventories, thereby delaying broader oil market shortages until the third quarter. Hamad Hussain of Capital Economics said: "Estimates of China's crude oil imports and refinery processing so far this month suggest that, compared to April, Chinese refiners relied more on inventories in May." Despite weak crude oil imports and a decline in refinery processing, China's underlying oil demand remains relatively resilient, indicating that commercial inventories are being used to fill the gap between supply and consumption. The economist noted: "If China's crude oil demand conditions in May are repeated in June, the 'critical point' for the global oil market may be postponed from June to July."```