China’s July oil imports rise 22% from June’s record low
This digest was compiled by AI from multiple sources — links to the originals are below.
China's crude oil imports jumped 22% in July from June's near‑decade low, customs data showed on Friday, as buyers took advantage of cheaper shipments following the brief reopening of the Strait of Hormuz. Imports, however, were 24.3% lower than a year earlier at 35.73 million metric tons, and refinery utilisation remained below 60% of capacity. The increase failed to reverse a drain on the country's commercial oil stockpiles, which fell by about 1 million barrels per day, according to consultancies Vortexa and Energy Aspects.
The Import Surge
Customs data released on Friday showed China imported 35.73 million metric tons of crude in July, equivalent to 8.41 million barrels per day. That marked a 22% jump from June, when imports had plunged to the lowest level in nearly a decade. The monthly increase was driven by the arrival of cheaper oil purchased after the Strait of Hormuz briefly reopened in June, allowing Chinese importers to lock in favourable prices. However, the July volume was still 24.3% below the same month last year and far short of pre‑conflict levels that reshaped global energy markets.
Refinery Throughput
Chinese refineries modestly raised run rates in July. The average utilisation of primary processing capacity edged up 0.82 percentage points from June to 58.81%, according to consultancy Oilchem. That figure lags dramatically behind the 72% recorded in July 2025. The persistent slack in refinery activity underscores the sluggishness of domestic fuel demand, even as crude purchases picked up month‑on‑month.
Reserve Depletion
Higher imports did little to replenish China’s oil inventories. Vortexa and Energy Aspects, consultancies that track storage volumes, estimate that onshore crude stocks shrank by around 1 million barrels per day in July. China does not publish official data on strategic or commercial reserves, leaving the market reliant on third‑party assessments. The concurrent rise in imports and drawdown suggests that imported barrels were largely absorbed by refineries or released from storage rather than stored.
What's Next
Market attention now turns to whether the August data will confirm a sustained recovery in Chinese crude demand. It remains unclear if the recent uptick signals a genuine demand rebound or merely a temporary restocking after the June collapse.
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China’s July oil imports rise 22% from June’s record low
