China's Crude Oil Imports Fell 41% in June to Lowest Since October 2016

China's crude oil imports fell about 41% year on year in June to 29.27 million tonnes, or nearly 7.12 million barrels per day, according to customs data released on Tuesday, July 14. That was the lowest level since October 2016 and roughly 12% below May, which had itself been the weakest reading in eight years.

Analysts attribute the drop to the war in the Persian Gulf and the disruption to tanker traffic through the Strait of Hormuz, alongside a slowdown in China's domestic demand. Independent refiners in Shandong province have cut run rates and shifted toward buying crude from Persian Gulf producers.

China is the largest buyer of Iranian oil, so a sharp fall in its imports can weigh on Iran's oil revenue and the domestic currency market.