China Cuts Oil Imports by 5.5 Million Bpd as U.S. Exports Hit 13 Million Bpd
Updated
Updated · Reuters · May 21
China Cuts Oil Imports by 5.5 Million Bpd as U.S. Exports Hit 13 Million Bpd
5 articles · Updated · Reuters · May 21
$100-$110 a barrel oil has replaced last month’s $160-plus spike even with the Strait of Hormuz still largely shut, as China slashed buying and the U.S. pushed more crude and fuel into global markets.
China’s net seaborne crude imports fell 5.5 million bpd to 8.5 million bpd in the 30 days to May 8, while refiners cut runs nearly a fifth to 8.4 million bpd and drew down storage instead.
U.S. crude and fuel exports rose to 13 million bpd in early May from 11.2 million bpd in March, helped by 133 million barrels sold from the Strategic Petroleum Reserve.
That demand pullback and inventory use crushed physical premiums: Dubai-linked grades fell to about a $9 premium from more than $65, while North Sea Forties slipped to a discount from a $21.50 premium in April.
Analysts say the relief may not last, because global inventories fell a record 246 million barrels in March and April and refiners will need to buy again if Hormuz stays closed.
Has China’s strategic energy planning permanently shifted power in global oil markets?
Why did the largest oil supply disruption in history cause prices to fall instead of skyrocket?
The 2026 Oil Crisis: Geopolitical Disruption, Market Responses, and the Future of Global Energy
Overview
In 2026, the global oil market faced a severe shock triggered by conflict in the Middle East and the closure of the Strait of Hormuz. This geopolitical instability caused major supply disruptions, stalling shipments through the Strait and directly impacting energy flows worldwide. As a result, global oil stocks dropped rapidly, pushing prices higher and creating a market deficit expected to last until late 2026. The crisis sent ripples across the global economy, forcing countries to take urgent measures to stabilize markets and highlighting the vulnerability of global energy systems to regional conflicts and chokepoint disruptions.