EL7.AI
CommoditiesMediumUpdated×3•Originally published 15 July 2026•Updated 15 July 2026•
1 min read

China Refinery Runs Crash to Pandemic Lows Amid Import Collapse

Industrial gauges and pipes against a map of China, with text indicating a refining slowdown.

Key Facts

1China’s refinery throughput slumped by 17.7% year-on-year to 12.47 million barrels per day in June.
2The refinery processing volumes in June were the lowest since the onset of the Covid pandemic in March 2020.

In a move reflecting a sharp slowdown in the world's second-largest economy, China's oil refining activity saw a significant decline during June. According to reports, refinery throughput slumped by 17.7% year-on-year to 12.47 million barrels per day, the lowest processing volumes recorded since the onset of the Covid pandemic in March 2020. This collapse is driven by a combination of crude import disruptions caused by the Hormuz crisis and a significant slowdown in domestic fuel consumption.

This decline comes as China faces mounting deflationary pressures, with recent trade balance data showing mixed economic performance. Compared to last year, analysts suggest that weak Chinese demand represents a bearish headwind for global energy markets, especially following Chinese inflation data (CPI) which printed at 1% year-on-year on July 9, 2026, missing expectations of 1.1% per market data, further fueling concerns about the pace of economic recovery.

Investors should monitor upcoming economic releases to assess the sustainability of this drop in energy demand. Traders will also be watching the FOMC Minutes scheduled for release later today for signals on global monetary policy and its subsequent impact on commodity prices.