China Oil Imports Hit Eight-Year Low on Price Spike

China's crude oil imports plunged to their lowest level in nearly eight years in May, as a sharp price spike triggered by disruptions to tanker traffic in the Persian Gulf deterred buying. Chinese customs data showed imports totaled just 33 million barrels, or 7.8 million barrels per day, compared with an average daily rate of 11.6 million barrels last year.

The drop in imports reflects the impact of heightened geopolitical risk in the Persian Gulf, a key transit chokepoint for global oil shipments. The disruption to tanker traffic pushed up crude prices, making spot purchases less attractive for Chinese refiners. Refinery run rates have also declined, and fuel exports have been curtailed as Beijing prioritizes ensuring adequate diesel and gasoline supplies for the domestic market. The decline in Chinese demand, the world's largest crude importer, is a bearish signal for global oil markets. Live fuel prices and charts on NowPrice show how the market is reacting to the shifting supply-demand balance.

Traders will watch for any further escalation in the Persian Gulf and its impact on tanker rates and insurance costs. Chinese crude imports typically recover after price spikes subside, but the pace of recovery will depend on refinery margins and domestic fuel demand. The next monthly data release from China will be closely monitored for signs of a rebound in buying.