$100 Oil: How China's Reduced Imports Are Balancing Global Market
China's reduced oil imports have been a stabilizing factor in the global market, helping to ease pressure on crude prices following the Iran war.
The country's sharp pullback in oil purchases has contributed significantly to the global reduction in demand, according to the International Energy Agency. Between February and May, China slashed its imports by 40%, or 4.6 million barrels a day.
Goldman Sachs estimates that if China had maintained its steady imports from March through August, Brent crude would be $10 to $15 per barrel higher than its current price.
China's role as a 'demand-side OPEC' is being likened by some analysts to the traditional Organization of the Petroleum Exporting Countries (OPEC) cartel. Instead of controlling supply, China can balance the market by adjusting demand.