Chen Aizhu, Dmitry Zhdannikov

LONDON (Reuters] – China increased oil purchases this year despite rising prices. Washington has called for a worldwide coordinated stocks release in order to cool down the market.

Washington sought China’s cooperation to help reduce the effect of the coordinated release by major oil consumers of strategic oil stock stocks to lower oil prices. This week, oil prices surpassed $100 per barrel for the first time since 2014. [O/R]

Joe Biden stated that the United States is working with other nations to release a second version of the November 2011 release.

US had in November announced the release of 50 millions barrels from its stock and stated that China would follow suit. India, Japan, South Korea, South Korea, Japan and Japan also agreed to do so. As gasoline prices in America soared, and inflation rose, this move was made.

India, Japan, South Korea, and the UK all said that they would allow some small volumes to enter the market. China, which is the No. 2 consumer in the world and the largest importer of goods, has not officially announced the plan and instead bought more to increase its reserves.

Two sources from the oil trade said Beijing increased purchases after meeting Vladimir Putin, Russian President of China, in Beijing in February.

China’s National Food and Strategic Reserves Administration has not responded to my request for comment.

A spokesperson for China Petroleum (NYSE:) and Chemical Corp, known as Sinopec (NYSE:), said the company’s January imports were steady from a year-earlier and the company is still compiling February data. He didn’t elaborate.

When the U.S. was asked to explain why China did not participate in the removal of oil storage from its shelves, the government would not comment.

BUILDING SPREE

A senior source from a large oil trading desk stated that they received numerous requests from Chinese buyers to import more oil into China.

A source close to a large trading company claimed that he brought multiple crude oil cargoes into China with his competitors during February.

Sources in trading said that although they were unsure if China knew of Ukraine’s imminent invasion, they stated it was evident it had increased its oil stocks despite the rising prices.

China has more oil reserves than America, but it can’t match the size of its strategic stocks.

An oil trader from China claimed that earlier in the month, he was instructed to create a plan for oil release from storage. However, no orders were given by the government.

Another two China-based trading executives stated that Unipec’s unusual buying spree over the past weeks by its trading arm Sinopec was part of a strategy to boost stock prices.

“Crude oil inventories in China are up roughly 30 million barrels since mid-November, with 10 million barrels in refineries and 20 million in commercial terminals,” said Augustin Prate from data analytics consultancy Kayrros.

Kayrros calculates China’s crude oil stocks based upon satellite tracking of tanks. It is approximately 950 million barrels.

According to a U.S. source, who was informed about the recent talks between the United States of America and the International Energy Agency, the United States is working with the IEA (the energy watchdog for the developed world) on releasing additional reserves. China isn’t an IEA full member.

A U.S. official, who asked not to be identified, said that “We are ready to take global actions when they’re needed”.

This is a very different situation than what we experienced in November, as Ukraine now faces a severe crisis.