Goldman Sachs is optimistic about China's prospects for increasing oil reserves in 2026 but remains bearish on oil prices

Goldman Sachs stated that China is expected to accelerate its crude oil reserves this year and in 2026, with falling prices and concerns over energy security triggering a buying spree. Daan Struyven, head of oil research at Goldman Sachs, said in an interview this week that he expects China's oil inventory to increase by 500,000 barrels per day over the next five quarters. This optimistic forecast far exceeds recent estimates of China's storage efforts. At the Asia-Pacific Oil Conference held in Singapore this week, attendees noted that China's buying has helped support demand and boosted oil prices, although the outlook for oversupply casts a shadow over the global market. Frederic Lasserre, head of research at Gongwo Group, estimated that China's inventory has increased by about 200,000 barrels per day in recent months. However, Goldman Sachs still expects Brent prices to fall to the mid-range of $50-60 next year. With OPEC+ and other oil-producing countries increasing production, the International Energy Agency raised its forecast for the record high level of oversupply expected in 2026 on Thursday