China's Unexpected Oil Import Decline Amid Middle East Disruptions

China's crude oil imports fell to approximately 6.7 million barrels per day in May, the lowest level in nearly a decade, according to tracking firm Kpler, despite ongoing Middle East conflicts that began February 28 and disrupted the Strait of Hormuz—which handles roughly a quarter of global seaborne oil trade. Rather than rushing to secure additional supplies as in previous energy crises, China reduced purchases from its average of 10.4 million barrels daily throughout 2025, drawing down its massive strategic and commercial reserves estimated to exceed 1.2 billion barrels at a rate of roughly 1 million barrels per day. Multiple structural factors contributed to this shift: state-owned and private refiners cut processing rates due to deteriorating profit margins and weakened demand, while rapid electric vehicle adoption reduced fuel demand by approximately one million barrels per day. The reduction has partially offset the global supply disruption caused by the conflict, helping prevent even steeper oil price increases. Analysts suggest this trend could continue through summer, representing a fundamental shift in how China responds to energy crises compared to historical patterns.