China, the world's largest crude oil importer, reduced its crude oil purchases significantly in the second quarter of 2026 (2Q26) as prices rose following disrupted flows through the Strait of Hormuz. The strait is the world's most critical oil transit chokepoint, through which roughly one-fifth of global oil consumption normally passes. The decline in Chinese imports helped ease global demand, partially offsetting the upward pressure on prices caused by the supply disruption through the strait.

Monthly data from China's General Administration of Customs shows that crude oil imports averaged 8.1 million barrels per day (b/d) in 2Q26, a 32% decrease from the prior quarter. In both May and June, imports dropped below 8.0 million b/d — a level not seen since 2016.

This downturn marks a sharp reversal from the record-high import volumes China maintained before the conflict around the Strait of Hormuz. In 2025, China imported an annual record of 11.6 million b/d, building up its strategic petroleum reserves during a period when crude oil prices were at their lowest since 2020. During the second half of 2025, when prices were at their lowest point, China imported an average of 12.0 million b/d, a rate that continued through February 2026. Those stockpiled reserves gave China flexibility to curb purchases when prices spiked, illustrating how the country's strategic reserve program functions as a buffer during supply shocks.

The majority of China's crude oil imports arrive via tanker. Vessel-tracking data from Vortexa indicates that the import decline was concentrated in waterborne shipments, while pipeline imports are estimated to have remained stable. The largest reductions in waterborne imports between 1Q26 and 2Q26 came from Iraq (910,000 b/d), Russia — China's primary crude oil supplier — (640,000 b/d), and the UAE (600,000 b/d). Because several of these suppliers rely on the Strait of Hormuz for shipments, the disruption directly constrained the routes through which China typically receives Middle Eastern and some Russian crude.

The scale of China's import reduction exceeded the cutbacks in refinery processing, indicating that the country drew down existing crude oil inventories. Chinese refineries processed 2.2 million b/d less crude oil in 2Q26 compared with 1Q26, while imports fell by 3.9 million b/d over the same period.

Globally, record-high inventory draws of an estimated 5.1 million b/d occurred in 2Q26 — a figure that would have been even larger absent the decrease in global demand. China's pullback from the market, combined with similar demand-side responses, represented a rare instance in which the world's top importer materially reduced pressure on prices during a major supply disruption rather than competing for dwindling available barrels.

Source: EIA