China significantly reduced its crude oil imports and refinery throughput in June, reflecting a notable shift in its oil market activity amid the ongoing conflict involving Iran. Official data showed that China’s crude imports fell to 7.12 million barrels per day (bpd) last month, marking the lowest level since October 2016 and a decline of 41.3 percent compared to June of the previous year.
This steep reduction came despite crude oil prices rising after attacks by the United States and Israel on Iran in late February, although prices remained below the spikes witnessed during the 2022 surge following Russia’s invasion of Ukraine. Typically, China tends to adjust its crude imports in line with price fluctuations, increasing imports when prices fall and cutting back as prices climb. The sharp fall in imports in June was therefore surprising for its scale.
Refinery processing rates also dropped significantly, with facilities operating at 12.47 million bpd—down 17.7 percent from June 2025 and the lowest level since March 2020 during the COVID-19 pandemic. Analysts estimate that this reduction implies a drawdown of about 740,000 bpd from China’s crude inventories in June, following a 500,000 bpd draw in May. Nevertheless, despite these recent draws, China has reportedly increased its overall crude stockpiles during the first half of the year, with a surplus averaging roughly 530,000 bpd.
China's capacity to cut refinery runs was aided by unofficial restrictions imposed by Beijing on the export of refined petroleum products. This policy appears to have aimed at securing adequate domestic fuel supply amid disruptions caused by the Iran crisis. Data from commodity analysts show that China’s exports of light and middle distillates were at approximately 393,000 bpd in June, slightly lower than May but recovering from a 54-month low of 338,000 bpd registered in April.
The ongoing conflict around Iran has caused a loss of about 10 million bpd in crude and refined product supply, primarily due to the effective closure of the Strait of Hormuz, through which a significant share of global oil passes. China’s drastic reduction in imports and refinery activity has played a crucial role in moderating crude demand during this period, while its export curtailments have contributed to growing tightness in refined product markets.
Looking ahead, market observers remain attentive to how China might adjust its crude and petroleum product flows as the crisis continues to evolve, given Beijing’s considerable influence on oil supply-demand dynamics amid global geopolitical tensions.