July 25, 20206 [ Reuters ]- China’s June crude imports crashed to a near-10-year low of 7.12 million bpd (-41% YoY) as refiners cut runs to 12.47 million bpd amid the Iran/Hormuz supply shock.
Despite the sharp drop, inventory draws stayed moderate (~940,000 bpd) and China still net-added crude stocks in the first half of the year, helped by unofficial limits on refined-product exports to protect domestic fuel supply.
Product exports of light and middle distillates stayed subdued but are already recovering (Kpler tracks ~787,000 bpd for July), while Asian refining margins remain extremely strong.
Near-term imports may rebound in August–September from cargoes loaded during the brief ceasefire, yet higher prices are likely to curb arrivals again from October onward.
With vast stockpiles (~1.2 billion barrels), China could next surprise markets by raising refinery runs and boosting fuel exports to capture elevated margins—potentially easing product tightness but further reducing its crude demand.
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