China's June oil imports hit near 10-year low amid Iran war

• June imports totaled 29.27 million tons (7.12 million bpd), down 41.3% year-over-year and 12% from May's already depressed levels
• China's refinery run rates fell to 57.72%, down 13.09 percentage points year-over-year, pressured by refined product export restrictions imposed in March to safeguard domestic energy security
• The sharp drop suggests permanent demand loss from China as high oil prices and the country's 'massive EV fleet' demonstrate China can sustain lower oil consumption levels

China's June Oil Imports Hit Near 10-Year Low Amid Iran War

Summary

China's crude oil imports plunged 41.3% in June to 29.27 million tons (7.12 million barrels per day), the lowest level since October 2016, according to customs data released Tuesday. The decline marks a continued slump from May's eight-year low, with June imports falling an additional 12% month-over-month.

Key Drivers:

• Refinery utilization rates dropped to 57.72%, near a 10-year low, down 13.09 percentage points year-over-year
• Weak domestic fuel demand
• Export restrictions on refined oil products imposed in March to safeguard energy security during the Iran war
• Structural shift toward electric vehicles reducing long-term oil dependency

Regional Impact:

China's seaborne crude imports stood at approximately 6 million bpd in June. Middle East imports hit a 10-year low, while Iranian oil imports specifically dropped 40% month-over-month to below 800,000 bpd, according to Vortexa.

Market Implications:

Lower Chinese demand is freeing up global oil supply for other buyers. Analysts suggest the market is weighing permanent demand loss from China, as soaring oil prices revealed the country's ability to function with less oil due to its extensive EV fleet. Vortexa analyst Emma Li noted that refinery run rates could partially rebound if export restrictions ease.

Additional Data:

• Natural gas imports rose 3.7% year-over-year in June to 10.9 million tons
• First-half 2026 natural gas imports fell 3.4% to 57.45 million tons
• Refined oil product exports totaled 4.36 million tons in June, with first-half exports down 13.2% year-over-year at 23.59 million tons