China Draws 41 Million Barrels in June as Crude Imports Sink to 6.78 Million Bpd
Updated
Updated · OilPrice.com · Jul 15
China Draws 41 Million Barrels in June as Crude Imports Sink to 6.78 Million Bpd
3 articles · Updated · OilPrice.com · Jul 15
Summary
China met June crude demand by pulling 41 million barrels from inventories, one of the largest monthly stock draws on record, instead of chasing higher-priced Middle Eastern cargoes during the Iran conflict.
Kpler estimated seaborne imports fell to 6.78 million bpd in late May from 8.5 million in April, while refinery runs dropped far less sharply, showing stored crude replaced missing imports.
More than 300 million barrels in refinery storage gave Chinese processors 60 to 75 days of cover, while Beijing still added 8 million barrels to strategic reserves even as commercial stocks fell 15 million.
That retreat reshaped regional pricing: Saudi Aramco cut Arab Light prices to Asia by $4 for June, $6 for July and $11 for August, helping Chinese buyers switch to Iraqi, Abu Dhabi and Saudi barrels.
Iran was left with 30 million to 34.5 million barrels floating offshore, and its July exports to China are expected to drop to about 556,000 bpd, underscoring how China’s stockpiles now influence oil markets alongside Saudi supply.
Has Beijing’s oil stockpile become a more potent weapon than Riyadh’s spare production capacity?
As China's reserves dwindle, will its return to the market trigger the price shock it tried to prevent?
With Russian warships escorting shadow tankers, is a catastrophic and state-backed oil spill now inevitable?
China’s 2026 Oil Import Collapse: Strategic Stockpiles, Policy Shifts, and Global Ripple Effects
Overview
China's crude oil imports dropped sharply in June 2026, continuing a trend of subdued demand that began with the onset of the Iran war. This decline is mainly driven by geopolitical events, which have disrupted global energy markets and directly reduced China's appetite for oil. In response, China has shown strategic resilience by drawing down its oil stockpiles, maintaining stable domestic production, and adjusting refinery operations. These actions have helped China manage supply disruptions and price volatility, but projections suggest that imports will fall even further in July, extending this period of constrained demand.