China's Crude Imports Remain Low Amid Ongoing Iran Conflict

China's seaborne crude oil imports saw an uptick in August from July but remained nearly 40% below pre-conflict levels. The country imported around 7.14 million barrels per day (bpd) of crude oil, up from 6.93 million bpd in July.

The dramatic reduction in China's seaborne crude oil imports since the start of the conflict is largely due to lower volumes from the Middle East. This is a result of constrained flows through the Strait of Hormuz following the U.S. and Israeli attack on Iran on February 28.

China's smaller independent refiners are losing access to Iranian crude, forcing them to either pay more for cargoes from other suppliers or cut processing rates. In contrast, China is increasing its imports from Russia, with seaborne arrivals reaching 1.68 million bpd in August, up from 1.40 million bpd in July.

China's decision to slash crude imports has been a major factor in keeping oil prices from surging since the start of the Iran war. However, its lack of product exports during this period also contributed to elevated fuel prices in Asia.