China's crude oil imports fall amid Strait of Hormuz tensions and tightening global supply

Energy data firm Vortexa warned that the global "crude cushion" built up over recent years could shrink sharply within the next two to three months unless geopolitical conditions improve. The firm highlighted reduced Atlantic Basin inflows, increased Chinese inventory draws and a shift toward costly ship‑to‑ship transfers, with 57% of Gulf crude exports in July involving such transfers.

In the second quarter of 2026, China imported just 8.1 million barrels per day of crude oil, a 32% decline from the previous quarter and the first sub‑8 million‑b/d level since 2016. The drop was driven by higher oil prices linked to disrupted flows through the Strait of Hormuz, with the biggest import reductions coming from Iraq, Russia and the UAE. Chinese refineries processed 2.2 million b/d less crude than in the prior quarter, while global oil inventories fell by an estimated 5.1 million b/d.