China Cuts May Seaborne Oil Imports to 6.4 Million b/d as Iran War Keeps Crude Below $100
Updated
Updated · Financial Times · Jun 4
China Cuts May Seaborne Oil Imports to 6.4 Million b/d as Iran War Keeps Crude Below $100
3 articles · Updated · Financial Times · Jun 4
Summary
China’s seaborne crude imports fell to 6.4 million barrels a day in May from 8.1 million in April, a drop traders and analysts say has helped prevent a sharper global oil price spike.
That pullback has cushioned the loss of roughly 12 million b/d of Gulf supply during the Iran crisis, keeping oil below $100 a barrel even as the war nears its 100th day.
S&P estimates China is drawing commercial inventories by 700,000 to 800,000 b/d through the third quarter, while refiners cut runs and refined-fuel exports sank to 300,000 b/d in April, near a decade low.
Domestic demand has fallen far less than imports—about 1.5 million b/d year on year in the second quarter—suggesting Beijing is relying on stockpiles as weak growth and electrification reduce oil dependence.
Analysts warn the buffer is temporary: once China returns to the market for those barrels, prices may need to rise enough to curb demand elsewhere.
China's hidden oil reserves are saving the market now, but for how much longer?
Is China's oil strategy a global safeguard or a calculated play for market dominance?
How did Chinese oil tankers pass through the blockaded Strait of Hormuz unscathed?
China's Crude Oil Imports Plunge to Decade Low Amid Iran War: Global Price Shock Averted, Energy Transition Accelerates
Overview
In May 2026, China’s crude oil imports dropped sharply due to higher prices and global supply issues, forcing Beijing to make complex adjustments to its energy procurement strategies. While the value of imports from Russia rose, the actual quantity fell, showing that China was paying more for less oil. Facing these challenges, China activated a multi-faceted response, including using its strategic reserves and tightening export controls, to protect its domestic market. These actions, combined with evolving market conditions and supply chain disruptions, highlight China’s efforts to maintain energy security in a volatile global environment.