China is hoarding oil at record levels to hedge against the loss of oil supplies from Africa and a war in Asia.    

China imported a record volume of oil in April to create a strategic petroleum reserve similar to that of the US. Political analysts said Beijing is amassing a huge stockpile of oil in the wake of clashes with Japan, Vietnam and the Philippines.

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China is also unnerved that growing violence in the African countries that supply it with oil will cut-off supplies of this vital commodity that powers China's massive oil refining industry.

Banks and financial services companies such as Citigroup, Inc. and Nomura Holdings Inc. said China's mammoth oil purchases are helping drive oil prices higher. Citigroup described China's oil buying as a "panicked stockpiling" driven by the infrastructure needs of China's oil refineries and also by worsening geopolitical tensions.

The International Energy Agency (IEA) said China will surpass the US as the world's largest oil consumer by 2030.

China bought more than 600,000 barrels a day of surplus crude from January to April, a record for that time of the year. IEA said the imports suggest a significant rise in commercial and emergency stockpiles.

China plans to build emergency reserves equivalent to 100 days of net imports by 2020. The country derives more than half of its crude from overseas.

TagsOil, hoarding, Oil prices