Chinese Oil Demand Rebound Sends Brent Price Soaring Towards $100

The price of oil is expected to rise as Chinese oil demand rebounds. China's oil imports, which cratered in 2026 due to a sharp slowdown in the economy or an aggressive drain of its strategic reserve, are now aggressively bidding up crude prices across Africa, Canada, and Latin America.

According to Bloomberg, China - the world's largest oil importer - is buying tanker loads of crude from Canada, Brazil, and Argentina. The Shanghai crude spread has jumped dramatically, trading just shy of the highest level hit since the Iran war, well above $100. This indicates that Chinese oil demand has finally turned around.

The renewed Chinese buying marks a major shift from a period when subdued Chinese buying helped restrain crude oil prices. Iranian exports are almost entirely shut off by the US blockade, and fighting is flaring again in the Middle East. The scramble for alternative supplies is becoming increasingly expensive for China.

Goldman Sachs energy expert Daan Struyven expects China's ability to adjust purchases to prices to help moderate any spikes in crude prices. However, he also warned that Brent may rally to as much as $120 a barrel if attacks on shipping in the Middle East increase.