China Oil Imports Collapse; Down 29% Maritime Activity Reports, Inc. By Clyde Russell June 10, 2026 Copyright AU USAnakul/AdobeStock China's trade in major commodities in May underscored that price moves are the primary driver of changes in flows in the world's biggest buyer of natural resources. The headline-grabbing number from customs data was the collapse in crude oil imports to an eight-year low of just 7.79 million barrels per day (bpd). The fallout from the war in Iran was blamed for the 29% slump in crude imports. In the months prior to the start of the conflict on February 28, levels of around 11 million bpd were common. The war resulted in the effective closure of the Strait of Hormuz, which sent Middle East crude oil prices sharply higher as at least 10 million bpd of supply was lost. Brent futures have since moderated from a post-conflict high of $126.41 a barrel to end at $91.45 on Tuesday. But the price of paper oil was well below the price of physical cargoes at the time when China would have been buying crude for May delivery. Saudi Arabia, the world's largest crude exporter, hiked the premium for its main Arab Light grade to a record high of $19.50 a barrel over the regional Oman/Dubai benchmark for May-loading cargoes, a move that reflected the tightness prevailing at that time in physical markets with the Strait of Hormuz shuttered. The premium for physical crude extended beyond just Saudi crude, meaning that Chinese refiners faced paying substantially more for cargoes for May delivery. Instead of paying up, they chose to cut imports and turn to their vast inventories, built up in previous years when prices were lower and there were also substantial discounts on sanctioned crude from Russia, Iran and Venezuela. The question is what will China's refiners do now that prices for crude oil futures and premiums for physical cargoes have eased? Will they try to increase imports and risk tightening the market and raising prices, or will they continue to