China's Crude Imports Rebound 22% in July After Historic June Slump
Key Takeaways
- •China’s crude oil imports increased 22% in July from June, averaging 8.45 million barrels per day.
- •June imports had fallen to a near-decade low after three months of weak buying amid high prices and constrained Middle East supply.
- •China’s large strategic oil reserve gave it room to reduce purchases and helped limit global oil price increases.
- •Analysts expect China’s renewed buying to tighten supply conditions because of its large role in global seaborne crude trade.
- •Sinopec bought 30 to 40 shipments of Russian ESPO crude for July to September delivery as buyers sought alternatives amid shipping disruptions in the Middle East.
China's crude oil imports rose by 22% in July compared to June, reversing a sharp decline that had pushed purchases to a near-decade low, Bloomberg reported, citing customs data. Imports averaged 8.45 million barrels per day, totaling 35.73 million tons for the month.
The rebound follows a dramatic reduction in Chinese crude buying that bottomed out in June. China had slashed imports to their lowest level in a decade, capping three consecutive months of depressed purchasing amid elevated global oil prices and constrained supply from the Middle East. In June, Beijing cut import volumes by an estimated 4.4 million barrels per day compared to the 2025 average.
China's ability to throttle imports so aggressively stemmed from its massive strategic stockpile. According to estimates by the U.S. Energy Information Administration, China held the world's largest oil inventory reserve at the end of 2025, totaling 1.397 billion barrels. That figure exceeded the combined strategic inventories of the United States, Japan, OECD Europe, Saudi Arabia, South Korea, Iran, the United Arab Emirates, and India — the next largest holders on the global list.
This substantial supply cushion allowed China, the world's top crude importer, to pause purchases for an extended period, a factor that analysts credit with helping cap global oil prices despite ongoing turmoil in the Middle East. However, analysts had warned earlier this year that China's eventual return to international crude markets would likely tighten supply conditions. Because China accounts for the largest single share of global seaborne crude trade, fluctuations in its import demand are closely tracked by OPEC+ producers, refiners, and energy traders as a leading indicator of near-term price direction.
In a related development, Reuters reported earlier this week that Sinopec, the world's largest refiner by capacity, has increased purchases of Russian Far East crude for third-quarter delivery. The move comes as Chinese buyers seek to secure cargo arrivals amid continued shipping disruptions in the Middle East. China has been a major purchaser of Russian crude since Western sanctions redirected Russian oil flows toward Asian buyers, making ESPO a natural substitute for Middle East grades when Strait of Hormuz shipping routes face disruption.
State-run Sinopec has acquired between 30 and 40 shipments of Russia's Eastern Siberia-Pacific Ocean (ESPO) crude, equivalent to approximately 241,000 to 320,000 barrels per day, for delivery between July and September.
By Irina Slav for OilPrice.com