EIA: China's Crude Imports Fall 32% in Q2, Hitting a Decade Low
Reduced demand from the world's largest oil importer partially offset the supply shock from the Strait of Hormuz crisis, with a direct impact on international prices.
China's crude oil imports fell 32% in the second quarter of 2026, to 8.1 million barrels per day (mb/d), the lowest level since 2016, according to the U.S. Energy Information Administration (EIA). In May and June, flows dropped below 8.0 mb/d, a threshold not seen in nearly a decade.
The collapse reflects the price spike triggered by the disruption of flows through the Strait of Hormuz, through which roughly 20% of the world's crude transits. China, which in 2025 had imported a record 11.6 mb/d, cut purchases once oil exceeded $100 per barrel. The contraction was almost entirely maritime: the largest country-of-origin cuts between Q1 and Q2 came from Iraq (minus 910,000 b/d), Russia (minus 640,000 b/d), and the United Arab Emirates (minus 600,000 b/d), according to Vortexa vessel-tracking data cited by the EIA. In June, China's crude imports collapsed 41.3% year-on-year, to 7.12 mb/d, Bloomberg reported.
The decline in Chinese demand acted as a partial buffer against the supply shock. The EIA estimates that global inventory draws reached a record 5.1 mb/d in Q2, a level that reduced demand from the world's largest importer helped moderate. Chinese refineries processed 2.2 mb/d less than in Q1, while imports fell 3.9 mb/d, a gap indicating intensive drawdown of strategic reserves accumulated during 2025. For Mexico, a crude exporter whose reference blend is indexed to the global market, the price moderation contributed by lower Chinese demand partially offset the upward pressure originating from Hormuz.
The decisive forward-looking factor is the pace at which Beijing replenishes its strategic inventories. As long as Chinese purchases remain constrained, upward pressure on international prices, including the Mexican Blend, faces a partial ceiling that the federal government's petroleum revenue projections must incorporate into their scenarios for the close of 2026.
This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.
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This article was drafted with AI assistance from verified sources and reviewed by a human editor before publication.