Beijing’s reduced crude purchases, falling to an eight-year low of 8 million barrels daily, helped prevent a sharper price surge amid supply disruptions.
China’s crude oil imports dropped to under 8 million barrels a day in May, an eight-year low, easing pressure on global prices despite supply shocks. The pullback helped keep prices near $120 a barrel, well below the $200 worst-case scenarios some analysts had warned of earlier this year.
Before the supply disruptions, China averaged 11.6 million barrels daily. The decline coincided with a US-Iran framework deal, which further reduced geopolitical risks and pushed prices to three-month lows. Analysts note Beijing’s restraint remains a key factor in preventing steeper price spikes.
Traders are now watching whether China resumes large-scale purchases as the geopolitical premium fades, which could reverse the cushioning effect on prices.