Updated
Updated · The New York Times · Jun 15
China Cuts Oil Imports Below 8 Million Bpd, Capping Prices After 14 Million-Bpd Supply Shock
Updated
Updated · The New York Times · Jun 15

China Cuts Oil Imports Below 8 Million Bpd, Capping Prices After 14 Million-Bpd Supply Shock

3 articles · Updated · The New York Times · Jun 15

Summary

  • China’s overseas oil purchases fell below 8 million barrels a day in May, the lowest level in more than eight years, according to customs data from Beijing.
  • That drop from a prewar average of 11.6 million barrels a day has helped prevent a sharper price spike even after the Iran war removed more than 14 million barrels a day from global supply.
  • Oil briefly neared $120 a barrel during the shock, but analysts said weaker Chinese buying kept prices from reaching the $200 levels some had warned about.
  • Prices slid to a three-month low on Monday after the United States and Iran said they had reached a framework to end the war, though analysts said China will still heavily influence the market.

Insights

As Chinese refiners falter, is the economic backbone of the Iran-China strategic partnership about to snap?
With its main artery blocked, how many days until Iran's oil industry faces a catastrophic shutdown?
Trapped between US sanctions and China's new law, what is the escape route for multinational companies?