Beijing's Oil Imports Saved the Global Market from Worse Price Shock

A report from Toronto-Dominion Economics says that if not for China's efforts, the oil price shock caused by the Iran war would have been worse. According to economist Marc Ercolao, China cut back on crude oil imports, reducing global demand by about five percent and helping to offset supply pressures.

China was the world's top importer of crude oil in 2025, with an average monthly import of around 45 million tonnes over the last five years. However, due to the Iran war, imports fell drastically to just under 30 million tonnes at the end of June.

The drop in China's imports was so significant that Oil markets expert Rory Johnston called it the 'Beijing Swing.' Ercolao notes that this reduction helped save the global oil market, but warns that this relief is temporary. The shock absorbers that stabilized the market are either exhausted or temporary, and the world may not be prepared to respond if the crisis worsens.