Chinese Oil Refiners Limit Purchases Amid High Global Prices

Chinese oil refiners are limiting crude oil purchases as global prices remain above $90 per barrel, a sharp increase from the sub-$70 average recorded last year. This cautious approach is driven by high costs and domestic fuel price caps imposed by the Government of China, which prevent refiners from passing increased expenses to consumers.

Supply disruptions in the Middle East resulting from the Iran war and a long-term shift toward electric vehicles have further impacted demand. While imports are expected to rise toward 9.9 million barrels a day in the fourth quarter of 2026, volumes remain significantly lower than the 12 to 13 million barrels per day seen in 2025. The Abu Dhabi National Oil Company recently reflected this trend by not awarding cargoes to Chinese buyers in its latest tender.

Despite the slowdown, China maintains a buffer of approximately 1.16 billion barrels across commercial and strategic reserves. Future import levels will depend on the recovery of oil flows through the Strait of Hormuz and the strategic energy security priorities of the state.