China has significantly increased its crude oil purchases from Middle Eastern producers following a period of reduced imports tied to the conflict near the Strait of Hormuz. Trading firms and buyers have acquired at least 26 million barrels of crude for delivery in July and August, sourced from Qatar, Saudi Arabia, the United Arab Emirates, and Iraq, according to industry data.

This volume marks a substantial rise compared to typical spot and trading firm purchases, which are usually much lower. Prior to the outbreak of conflict in the region, China imported roughly 5.5 million barrels per day from Middle Eastern countries, predominantly through formal supply channels managed by Gulf producers like Saudi Aramco.

Saudi Aramco recently offered steep discounts on all its crude grades, especially its flagship Arab Light, for Asian buyers. The price cuts, the deepest since June 2020, came in response to the partial reopening of the Strait of Hormuz to merchant vessels. This waterway, through which about one-fifth of global oil shipments pass, had faced significant restrictions amid tensions related to the Iran conflict. The discounts represent a strategic adjustment after earlier price increases amid market uncertainties.

Analysts noted that China’s re-engagement with Gulf crude markets signals a move to replenish domestic stockpiles that dwindled during the conflict. China had deliberately scaled back imports to prevent further upward pressure on global oil prices as the war threatened to disrupt supplies through the Strait of Hormuz. Commercial inventories in China are estimated to have been drawn down by as much as one million barrels per day during May and June, according to energy experts.

The resumption of crude flows from the Middle East is also seen as a positive signal for global oil markets. Some market watchers suggest that China’s visible restocking efforts could drive a rebound in prices, reversing the downward trend linked to earlier supply disruptions and cautious buying.

Data from commodity intelligence firm Kpler indicates that crude deliveries from the Middle East to China reached their lowest level in a decade during April but have now accelerated amid improving market conditions and more favorable pricing. The increase in Chinese purchases is closely monitored by traders, given the country’s role as one of the world’s top oil consumers and its influence on regional supply-demand dynamics.