China's June oil imports hit near 10-year low amid Iran war
This digest was compiled by AI from multiple sources — links to the originals are below.
China's crude oil imports in June fell to their lowest level in nearly a decade, according to Reuters data. The decline reflects reduced demand from independent refiners and disruptions caused by the ongoing Iran war.
Import Volume Drop
China imported 8.8 million barrels per day (bpd) of crude oil in June, the lowest since September 2016, Reuters reported. The figure is down from 10.3 million bpd in May and 11.3 million bpd in June 2025. Independent refiners, which account for about a fifth of China's total crude processing, cut runs due to weak margins and reduced quotas.
Iran War Impact
The conflict with Iran disrupted shipping routes in the Strait of Hormuz, raising insurance costs and delaying deliveries. Chinese buyers also faced tighter US sanctions enforcement on Iranian crude, limiting supply from a key source. The war has pushed global oil prices higher, further dampening Chinese demand.
Refinery Runs and Quota Impact
Independent refiners in China, known as teapots, reduced processing rates to 55% of capacity in June, down from 65% in May. Beijing issued 10% fewer crude import quotas for the second half of 2026 compared to the same period last year, limiting feedstock availability.
What's Next
China's crude imports are expected to remain subdued in July as independent refiners continue to face margin pressure. It remains unclear whether Beijing will issue additional import quotas to stabilize domestic supply.
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China's June oil imports hit near 10-year low amid Iran war
