Key facts
- China, the world's largest crude oil importer, is increasing its purchases.
- Renewed hostilities in the Strait of Hormuz are putting upward pressure on oil prices.
- China's crude oil imports fell 32% in Q2 2026, averaging 8.1 million barrels per day.
- Monthly imports in May and June 2026 dropped below 8.0 million b/d for the first time since 2016.
- China relied on strategic reserves to buffer reduced imports during price spikes.
- Analysts anticipate substantial repercussions on global oil markets as China begins restocking.
China is increasing its crude oil purchases as renewed hostilities in the Strait of Hormuz, a critical global oil chokepoint, are driving up prices. The country, the world's largest crude oil importer, had significantly reduced its buying in the second quarter of 2026 due to price spikes, opting instead to draw from its strategic reserves.
According to data from China's General Administration of Customs, crude oil imports averaged 8.1 million barrels per day in the second quarter of 2026, a 32% decrease from the previous quarter. Monthly imports in May and June fell below 8.0 million b/d for the first time since 2016. This pullback was a direct response to conflict-related disruptions in the Strait of Hormuz, which pushed global crude prices higher and made stockpiling more expensive.
Tanker traffic data from Vortexa confirmed that the decline was concentrated in waterborne imports, with pipeline flows remaining stable. Major drops in imports were seen from Iraq, Russia, and the UAE, all significant exporters whose cargoes typically transit or originate near the Hormuz corridor. Chinese refiners maintained operations by dipping into stored crude, as imports dried up, contributing to a record global inventory draw of 5.1 million b/d in Q2 2026.
Analysts suggest that China's return to the market, particularly as it begins to restock its reserves, could have substantial repercussions on global oil prices. The country had previously built up strategic oil reserves estimated at over 1.2 billion barrels, which could last at least a year. In July 2026, China posted a small surplus, reflecting refinery output cuts rather than a significant increase in imports. However, recent weeks have seen a partial lifting of restrictions on refined product exports and some crude imports from the Gulf.