China's July oil throughput posts first month-on-month rise since Iran war

• China drew down an estimated 25-28 million barrels from onshore oil stockpiles in July, the largest drawdown since September 2021, suggesting actual refinery output may be higher than official figures indicate
• Oil imports remain down 24% year-on-year despite a rebound last month, with consultancies estimating drawdowns are accelerating and could continue through October 2026
• Year-to-date throughput for January-July fell 6.5% to 13.67 million bpd, while domestic crude production increased 0.9% to 4.3 million bpd in July

Summary

China's crude oil throughput in July 2026 showed the first month-on-month increase since the Iran war began in late February, though it remained significantly below pre-war levels. The world's largest energy importer processed 53.11 million metric tons (12.5 million barrels per day) in July, down 15.8% year-over-year but up 0.3% from June's six-year low.

Key Data Points:

• July throughput: 12.5 million bpd
• January-July throughput: 396.96 million tons (13.67 million bpd), down 6.5% year-over-year
• Oil imports: down 24% year-over-year despite recent rebound
• Domestic crude production: 4.3 million bpd in July, up 0.8% year-over-year

Critical Development:

China drew heavily on crude oil stockpiles in July, with consultancy estimates showing withdrawals of 25-28 million barrels—the largest drawdown since September 2021. This discrepancy between official throughput figures and inventory draws suggests actual refinery output may be higher than reported, potentially because smaller refineries are excluded from official statistics.

Stock drawdowns appear to be accelerating, with Kpler estimating an additional 26 million barrels withdrawn through August 17, with further acceleration expected through October.

Market Implications:

The conflict has disrupted supplies and weakened domestic demand, forcing China to reduce crude processing and imports while freeing supply for other global importers. The aggressive inventory drawdowns underscore the severity of import reductions, though China's substantial reserves can sustain current withdrawal rates for years. China does not publicly disclose reserve levels, treating them as state secrets.