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

Goldman Sachs said that China is expected to accelerate its oil reserves this year and in 2026, as falling prices and concerns about energy security will trigger a buying frenzy. Daan Struyven, head of oil research at Goldman Sachs, said in an interview this week that China's oil stocks are expected 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 Petroleum Conference held in Singapore this week, participants said that Chinese buying has helped support demand and boost oil prices, but the prospect of oversupply has cast a shadow over the global market. Frederic Lasserre, head of research at Commodity Insights, estimated that China's stocks have increased by approximately 200,000 barrels per day in recent months. However, Goldman Sachs still expects Brent prices to drop to the mid-$50s to $60s next year. With OPEC+ and other oil-producing countries increasing production, the International Energy Agency raised its forecast on Thursday for the record high level of oversupply expected in 2026.