China Cuts Oil Imports by 4 Million Barrels Daily as Prices Hit $100
China is capping global oil price spikes by slashing imports, offsetting supply losses from Middle East infrastructure attacks.
Key points
- Oil prices exceeded US$100 per barrel after drone strikes damaged Saudi Arabia's East-West pipeline.
- China reduced daily oil imports by four million barrels to offset losses from Middle East disruptions.
- Sinopec forecasts a 3.9% drop in China's oil demand for 2026 due to electric vehicle adoption.
Global oil prices have surged past US$100 per barrel for the first time since May. This spike follows the destruction of Saudi Arabia’s critical East-West pipeline infrastructure.
Drone strikes on pumping stations forced Aramco to shut the 1,200km route. The pipeline had served as a vital alternative to the Strait of Hormuz bottleneck.
China reduces demand to stabilize prices
China cut its daily oil imports by up to four million barrels. This reduction directly offset the five million barrels removed from the market by regional conflicts.
The nation relied on vast pre-war stockpiles rather than competing in the open market. This strategic shift kept price increases from becoming even more severe.
EV adoption drives structural demand decline
China’s oil consumption may have peaked in 2025, according to industry forecasts. Sinopec projects a 3.9% drop in domestic demand for the year 2026.
Two-thirds of new car sales in China are now battery-electric or hybrids. This rapid transition reduces reliance on imported fuel regardless of geopolitical instability.
Alternative routes mitigate supply disruptions
Producers are rerouting shipments through the Omani port of Sohar to bypass Hormuz. Aramco plans to ship 60 million barrels via this route in Q3.
Vessel tracking data shows China-bound crude shipments from Sohar rose tenfold since February. However, Russian diesel production remains down 30% from last year.
The Conversation notes that China’s shrinking appetite caps current price spikes. Yet analysts warn Brent crude could still exceed US$120 by year end.
