Beijing’s delayed spot purchases and inventory drawdowns risk tightening supply as Middle East tensions disrupt shipping routes.
China has slowed oil and LNG spot purchases, opting to draw down inventories amid heightened Middle East supply risks. Refinery activity has also eased, reducing immediate demand for crude cargoes. The shift follows months of softer imports that had previously cooled global energy prices.
Earlier this year, China’s reduced appetite for energy helped stabilize markets strained by OPEC+ cuts and geopolitical tensions. Analysts had expected demand to rebound, but caution over shipping disruptions and potential price dips has delayed purchases. Inventory levels remain elevated but are declining as spot buying stalls.
The delay in Chinese buying could tighten global supply balances, particularly if Middle East conflicts escalate. Markets may face upward pressure if Beijing resumes purchases at higher price levels or if alternative supply routes face further disruptions.