Northern Trust published an analysis on China’s exposure to a potential disruption in the Strait of Hormuz, saying China has an estimated 1.2 billion barrels of crude in onshore reserves, equal to up to four months of import demand. The report said China could increase crude purchases from Russia and has ordered refiners to curb fuel exports to preserve domestic supply. It also noted China imports around a quarter of its LNG from Qatar, while oil and gas account for about 4% of China’s electricity generation. Northern Trust said a prolonged disruption could raise the risk of physical shortages affecting industrial activity and supply chains, with second-round effects including higher transport costs and elevated shipping insurance premiums. The report added that energy-intensive sectors such as chemicals and fertilizer-related supply chains could face added pressure from crude price volatility and potential fertilizer shortages.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Northern Trust Corporation published the original content used to generate this news brief on March 13, 2026, and is solely responsible for the information contained therein.
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