China’s crude oil imports fell sharply in June, dropping 41.3% to 29.27 million metric tons, or about 7.12 million barrels per day, the lowest monthly level since October 2016, according to customs data released on Tuesday.
The decline reflected weaker refinery operations across the country, with crude distillation unit utilisation falling to 57.72% in June, a level analysts said was close to a 10-year low as fuel demand softened and export restrictions curbed refining activity.
Imports continued their downward trend after reaching an eight-year low in May, while seaborne crude arrivals fell to around 6 million barrels per day. Ship-tracking firm Vortexa said imports from the Middle East hit their lowest level in a decade, while purchases of Iranian crude dropped about 40% from May to below 800,000 barrels per day.
Analysts attributed the slowdown to sluggish domestic fuel consumption and Beijing’s restrictions on refined fuel exports, introduced in March to safeguard domestic energy supplies during the Iran conflict. They noted refinery throughput could recover if export controls are relaxed.
The weaker Chinese demand has freed up more crude supplies for other global buyers, while the country’s growing electric vehicle fleet is also reducing long-term oil consumption. Meanwhile, China’s natural gas imports rose 3.7% year-on-year in June to 10.9 million metric tons, although first-half imports remained below last year’s levels, while refined fuel exports continued to decline under tighter export policies.