China Crude Imports Plummet 40% as Global Oil Price Surge Looms

China's crude oil imports dropped by over 40% in June compared to the same period last year, reaching 7.2 million barrels per day.

This significant reduction has helped curb the upward movement of global oil prices, but experts warn that ongoing inventory drawdowns in other regions could drive crude to $120 per barrel or beyond if the Strait of Hormuz remains blocked.

According to analysts at Capital Economics, China's lower imports may not protect the broader market indefinitely, as OECD commercial inventories have been declining since the start of the Iran conflict, signaling tighter supply conditions.