Chinese Crude Imports Bounce Back Amid Elevated Prices

China's crude oil imports are showing signs of recovery after months of subdued buying amid the US-Israel war on Iran. According to Chinese customs data, China's crude imports rose 6.2% in August compared to the previous month, reaching 37.9 million tonnes - the highest import level seen for four months. The figure is still 23% lower than a year earlier.

The recovery has continued into September, with trade intelligence firm Kpler reporting that China's crude imports have increased to 7.84 million barrels per day (bpd), up from 7.25 million bpd in the previous month. A year ago, the figure was 9.76 million bdp.

Analysts do not expect China to quickly return to its pre-war import levels, as elevated crude prices could squeeze margins for Chinese refineries and the country's stockpiles are still large enough to last several months.