China’s crude oil imports fell 41.3% in June, marking the lowest level in nearly ten years.
The sharp decline coincides with refinery run rates hitting a similar multi-year trough, driven by a combination of weak domestic fuel demand and new export restrictions on refined oil products aimed at safeguarding national energy security.
The data highlights a significant contraction in the world’s largest crude importer, adding downward pressure on global oil markets.
With refineries operating at reduced capacity, the immediate demand for feedstock has evaporated, exacerbating the supply normalization that followed the recent ceasefire agreement between the United States and Iran.
This development reinforces the view that China’s oil demand profile is undergoing a fundamental structural shift.
The rapid transition to electric vehicles is permanently reshaping the fuel mix, meaning imports are unlikely to return to pre-conflict levels even as geopolitical tensions ease.
The export curbs on refined products further complicate the picture, as Beijing prioritizes domestic supply stability over export revenue.
For traders, the signal is clear: the demand side of the oil equation is weakening faster than previously modeled.