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Energy — China — World Affairs — Economy

Analysts Warn Oil Prices May Rise Despite China’s Demand Slowdown

China cut crude imports from 11.7 million barrels per day in February to less than 9 million barrels per day by late May

,   and  TIPP Staff
3 min read
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China’s sharp reduction in crude oil imports has played a major role in preventing global oil prices from climbing far above current levels despite disruptions caused by the U.S.-Iran conflict, according to analysts.

The report said China cut crude imports from 11.7 million barrels per day in February to less than 9 million barrels per day by late May.

Analysts at J.P. Morgan estimated that this accounts for roughly 74% of the decline in global crude imports, helping ease pressure created by supply disruptions linked to the Strait of Hormuz.

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According to Societe Generale, the decline in Chinese demand, combined with strategic petroleum reserve releases and increased production from countries such as Brazil and Venezuela, has helped avoid a severe energy crisis similar to the 1973 oil embargo.
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However, analysts cautioned that the current stability may not last. As inventories are depleted and strategic reserves require replenishment, higher oil prices may be needed to restore market balance.

Brent crude briefly climbed near $98 per barrel after renewed Israel-Iran tensions, highlighting the market’s continued vulnerability to geopolitical risks.

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