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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a significant shift for global energy markets, China's crude oil imports collapsed in May to their lowest levels since October 2017. According to reports, imports dropped to 7.8 million barrels per day, representing a nearly 30% decline compared to last year's daily average of 11.6 million barrels. This sharp contraction is driven by Chinese refiners slashing purchases in response to high international prices, opting instead to tap into a massive inventory cushion estimated at over 1 billion barrels.
This slump in Chinese demand places unprecedented pressure on traditional crude suppliers as refiners leverage their strategic reserves to bypass geopolitical price premiums. Per market data, global benchmarks Brent and WTI have remained elevated due to regional instability, prompting Beijing to utilize its stockpiles as a buffer. Compared to prior cycles, the current scale of import reduction highlights China's increased capacity to withstand prolonged periods of high prices without accelerating spot market activity.
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Sign InRegarding market performance, Saudi Aramco (2222.SR) shares closed at 27.06 SAR as of June 10, 2026. Investors are now focused on upcoming Chinese trade balance data and potential OPEC+ policy signals as primary catalysts. These factors will be critical in determining whether this demand weakness persists and how it will impact the long-term valuation of energy exports to the Asian giant.
Update: Market reports released three months into the Iran war indicate that China is consuming significantly less fuel than previously anticipated. This development reflects a structural shift in demand estimates, suggesting that the pressure is no longer just a temporary reaction to high prices but a fundamental weakness in consumption levels within the world's largest oil importer.