Strategic oil reserves refer to one of the effective ways to deal with short-term oil supply shocks (large-scale reductions or interruptions). It serves national energy security, aims to ensure the continuous supply of crude oil , and has the function of stabilizing abnormal fluctuations in domestic oil prices .
The strategic petroleum reserve system originated in 1973. At that time, OPEC oil-producing countries imposed an oil embargo on western developed countries, and the developed countries jointly established the International Energy Agency. In response to the oil crisis , member states stockpiled oil. The International Energy Agency requires member countries to stockpile at least 60 days’ worth of oil, mostly crude.
After the second oil crisis in the 1980s, they stipulated that it should be extended to 90 days, mainly including government reserves and corporate reserves. Currently, only a few countries in the world have strategic oil reserves of more than 90 days.