China Trims Oil Intake as Refinery Activity Hits Four-Year Floor

The drop to 7.8 million barrels per day, down from an 11.6 million average last year, underscores the impact of price volatility stemming from Middle Eastern supply constraints. Beijing is prioritizing domestic diesel and gasoline availability, curbing exports to insulate the local market from external shocks. Societe Generale analysts note this pullback serves as a critical buffer, effectively offsetting supply disruptions more significantly than coordinated strategic reserve releases from the U.S., Europe, and Japan.

Whether this demand suppression holds remains an open question for global markets. China has leaned on its massive reserves—estimated to exceed 1 billion barrels—to navigate the current environment. While Kpler analysts suggest these stockpiles will eventually require replenishment, the timing of any import rebound remains tethered to global price stabilization.