The AI revolution is deeply energy-intensive, data centers require vast amounts of reliable power, and oil remains one of the immediate, scalable sources to support that growth. That is why, beneath today’s market pessimism, I see an undervaluation opportunity forming across the energy complex. But fundamentals still rule the day, and for now the dominant narrative is a perceived oil glut, whether real or exaggerated, which continues to anchor prices in the $60s.
China’s Strategic Buying and Asia’s Delayed Tariff Shock
China is using this price window to quietly and aggressively rebuild its stocks, with commercial and SPR tanks only sixty percent utilized and substantial new capacity coming online next year. This gives Beijing tremendous flexibility and reinforces its position as the most resilient major Asian economy heading into 2026. Vietnam, through skillful “bamboo diplomacy, ” has navigated tariff pressures more effectively than its neighbors, but Southeast Asia as a whole may only begin to feel the delayed impact of U.S. trade measures next year. Meanwhile, the sanctioned crude story is diverging: Selected Chinese private refiners are buying discounted Russian barrels at full tilt, while Indian refiners have paused purchases pending clarity on their U.S. trade negotiations. The oil market may look subdued, but beneath the surface, Asia’s strategic repositioning is already shaping the next phase of the cycle.