Chinese State Oil Company Sees Slowing Down in Global Energy Purchases

The Chinese state-owned oil company’s purchasing power is waning as the global energy market adjusts to changing dynamics, sources close to the matter revealed. The slowdown comes amid efforts by Beijing to diversify its energy imports and reduce reliance on the Middle East and Africa, where prices have surged due to conflicts and sanctions. State Energy Company of China (SECC), China’s largest oil refiner, has been scaling back its purchases from major producers such as Saudi Arabia and Nigeria in recent months. Industry analysts point to a more gradual approach by SECC as it seeks to avoid sparking price volatility in the global market. Meanwhile, other Chinese companies are continuing to snap up energy assets abroad, driven by China’s Belt and Road Initiative aims to secure access to new energy sources. Despite the slowdown, China remains one of the world’s largest oil importers, with purchases accounting for around 10% of global demand. The impact on global markets is limited so far, as other buyers such as India and South Korea are filling the gap left by Chinese purchases.