China Cuts May Crude Imports to 6.7 Million Bpd as Hormuz Curbs Help Cap Oil Prices
Updated
Updated · Semafor · Jun 9
China Cuts May Crude Imports to 6.7 Million Bpd as Hormuz Curbs Help Cap Oil Prices
3 articles · Updated · Semafor · Jun 9
Summary
China’s seaborne crude imports fell to about 6.7 million barrels per day in May, the lowest in a decade and roughly 3.5 million bpd below a year earlier.
That drop is helping offset more than 12 million bpd of OPEC+ supply shut in by Strait of Hormuz restrictions, easing pressure that might otherwise have pushed oil toward $150 a barrel.
Chinese refinery runs also slipped to about 13.1 million bpd, down 1.8 million year on year, while refiners drew roughly 15 million barrels from storage in May to keep imports depressed.
Refinery inventories still sit slightly above 300 million barrels—about 60 to 75 days of cover at current import rates—suggesting China can keep acting as a demand-side buffer only until around August.
Beyond that, inventories will need rebuilding and Middle East supply recovery could stay slow, with Saudi Arabia and the UAE needing weeks but Kuwait and Iraq potentially taking four to five months, leaving balances fragile into 2027.
As China’s temporary demand fix nears its end, is the global oil market heading for an even bigger shock this August?
With a full oil supply recovery not expected until 2027, are consumers facing years of sustained high energy prices?
Beyond blockades, has 'weaponized insurance' created a new playbook for shutting down global trade during conflicts?
China’s Drastic Oil Import Reduction in May 2026: Global Price Relief and Geopolitical Shifts
Overview
The ongoing conflict in West Asia led to the closure of the Strait of Hormuz, severely restricting crude oil flows and causing oil prices to surge, especially in Asian economies like India. Over three months of major supply disruptions followed. However, China’s significant reduction in crude oil imports in May 2026 acted as a crucial stabilizer for global energy markets. By stepping back from the market, China helped prevent a more severe crisis for large Asian importers and eased upward pressure on global oil prices, showing how strategic demand management can mitigate the impact of major supply shocks.