China's July Crude Oil Imports Rebounded 22% MoM but Remained Below Year-Ago Levels
0xBroomberg
China imported 35.73 million tonnes of crude oil in July — roughly 8.45 million barrels per day — a 22% rebound from June's multi-year low, yet still short of last year's pace, leaving the recovery hostage to the Strait of Hormuz standoff.
How deep was the June trough?
June crude imports had fallen to their lowest since October 2016; July's 22% rebound brought the figure back to 35.73 million tonnes.
This means → the "sharp recovery" is largely a low-base bounce, not a structural upturn in demand.
Even after the rebound, July volumes remained well below the same month last year — supply bottlenecks are far from resolved.
Where did the extra oil come from?
Two supply lines kicked in together: a temporary U.S.–Iran peace deal in June restored some tanker traffic through the Strait of Hormuz, while refiners ramped up purchases from producers outside the Middle East.
Russia was the primary alternative source, filling the gap left by Saudi and other Middle Eastern suppliers disrupted by Red Sea tensions.
In plain terms = the main sea lane was blocked, so refiners bought more Russian crude via other routes — both channels working at once propped up July's number.
Can the rebound last?
Tensions around the Strait of Hormuz have flared again recently, disrupting passage once more and spilling over into the Red Sea.
This means → Saudi exports to China face further compression, narrowing the very supply line that helped July's recovery.
Two variables will decide whether crude imports keep climbing: the trajectory of Hormuz negotiations and the stability of Russian supply.
What about coal and natural gas?
Coal imports hit 42.73 million tonnes in July, up 20% year-on-year — driven mainly by a major accident in Shanxi province in late May that curtailed domestic output, forcing the gap to be filled by imports.
Natural gas imports edged down 0.9% year-on-year, with Middle Eastern LNG supply still hampered by regional conflict.
This reflects a common thread: all three of China's major energy imports — crude, coal, and gas — are being shaped by supply-side shocks, not demand-side drivers.
Content is for reference only, not financial advice.