China's Crude Oil Imports Plunged 41% in June to Lowest Monthly Volume Since October 2016

China's crude oil imports fell about 41% in June to nearly 29.27 million tonnes, the lowest monthly volume since October 2016, according to Chinese customs data released in mid-July. The drop was a direct result of the near-total disruption of tanker traffic through the Strait of Hormuz amid the intensifying US-Iran conflict, weak domestic refinery utilisation, and Beijing's strategy of drawing down pre-accumulated stockpiles rather than buying at elevated spot prices.

China is the largest buyer of Iranian oil and the region's most important energy export market, so its reduced purchases affect both Iran's oil revenue and the global supply-demand balance. Analysts say China's cut in imports, from about 11.7 million barrels a day in February to just under 9 million a day by late May, has partly cushioned the Strait of Hormuz supply shock on the global market.