The drop to 7.8 million barrels per day, down from an 11.6 million average last year, underscores the impact of price volatility stemming from Middle Eastern supply constraints. Beijing is prioritizing domestic diesel and gasoline availability, curbing exports to insulate the local market from external shocks. Societe Generale analysts note this pullback serves as a critical buffer, effectively offsetting supply disruptions more significantly than coordinated strategic reserve releases from the U.S., Europe, and Japan.
China Trims Oil Intake as Refinery Activity Hits Four-Year Floor
With refinery run rates sinking to 66.3% in May, China’s crude oil imports have plummeted to their lowest level since 2018. The sudden contraction in processing volumes—down 9.1% annually to 53.72 million tons—signals a sharp shift in the world’s largest oil buyer as domestic fuel security takes precedence over global demand.
Whether this demand suppression holds remains an open question for global markets. China has leaned on its massive reserves—estimated to exceed 1 billion barrels—to navigate the current environment. While Kpler analysts suggest these stockpiles will eventually require replenishment, the timing of any import rebound remains tethered to global price stabilization.
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