China is estimated to have added approximately 200,000 barrels per day (bpd) of crude oil to its vast inventories in July as imports rebounded from decade-low levels recorded in June, while refinery runs remained suppressed amid the Middle East crisis, according to analysis by Reuters columnist Clyde Russell. As the world's largest crude oil importer, China has managed its strategic petroleum reserves differently than other major oil consuming nations during the ongoing Hormuz Strait disruptions. The country began drawing down stockpiles only in May, marking the third month of the Middle East conflict, after having accumulated an estimated 1.4 billion barrels of crude oil in commercial and strategic reserves at the onset of the Iran war.
According to Russell's calculations based on officially available Chinese data, the pattern of inventory drawdowns observed in May and June reversed course in July. The analyst estimated that China had 210,000 bpd of crude available for storage in July, based on total crude availability of 12.72 million bpd, comprised of 8.41 million bpd of imports and 4.3 million bpd of domestic production, against refinery throughput of 12.51 million bpd. Unlike the United States, China does not publicly report inventory figures.
Market analysts therefore rely on calculations of overall crude supply—combining domestic production with imports—against refinery processing rates to determine the volume of crude entering reserves versus being refined into finished fuels. The latest assessments indicate that China's substantial crude oil stockpile has largely held steady at approximately 1.2 billion barrels, nearly five months after the Strait of Hormuz closure initiated the most severe disruption to global oil supplies. The blockade has significantly affected international energy markets and trade flows.
During the Middle East conflict, China reduced overall crude oil imports as domestic refiners cut operational rates and authorities implemented restrictions on fuel exports to safeguard domestic supply security. However, Beijing has recently begun easing some of these fuel export restrictions, a move that catalyzed the rebound in crude oil imports observed in July following June's ten-year import low. The increase in crude oil imports during July likely facilitated resumption of inventory building, representing a market surprise that potentially signals continued weakness in domestic demand and refinery utilization rates within China.
This strategic positioning may provide China with greater flexibility in managing supply disruptions and maintaining energy security amid the ongoing regional tensions affecting global crude flows through critical maritime chokepoints. Source: OilPrice.com, analysis by Reuters columnist Clyde Russell (August 17, 2026)
Source: oilprice.com