China's Crude Oil Imports Plummet Amid Strait of Hormuz Crisis
China's crude oil imports plummeted by 30% in Q2 2026 compared to the same period last year, according to official data. The reduction is attributed to a combination of factors, including inventory drawdowns and reduced refinery runs.
The analysis found that changes in stockpile additions accounted for more than half of the decline, with China withdrawing 363,000 barrels per day (bpd) from storage in Q2 2026. Refinery runs also decreased, averaging 12.8 million bpd, a 1.6 million bpd reduction from Q2 2025.
Domestic prices for road transport fuels rose in line with international prices, limiting demand. Despite price caps, end-user prices increased, leading to declines in transport fuel demand. Gasoline demand fell by 5% year-over-year (y/y), while diesel demand dropped by 13% in Q2 2026.
Beijing's restriction on refined product exports also played a role in the decline, with China's exports of diesel, gasoline, and jet fuel registering year-over-year declines of 551,000 bpd, 474,000 bpd, and 418,000 bpd, respectively.