China oil imports helped limit the global crude price surge after the war-linked supply shock, according to a New York Times report.
China, the world’s largest oil buyer, imported an average of 11.6 million barrels a day before the conflict began. By May, that figure had dropped below 8 million barrels a day, based on customs data released by Beijing. As a result, the pullback acted as a buffer for oil markets.
The report said the conflict between the United States, Israel and Iran began in late February. It added that Iran then moved to close the Strait of Hormuz, removing more than 14 million barrels a day from global markets. Prices climbed to nearly $120 a barrel, yet they did not reach the $200 level that some analysts had warned about.
China Oil Imports and Price Pressure
Analysts cited by the New York Times said China’s lower buying was a key reason prices stayed contained. Jason Bordoff of Columbia University’s Center on Global Energy Policy was among those cited in the report. Meanwhile, the article said China’s crude imports in May fell to their lowest level in more than eight years.
Oil has since fallen to three-month lows after the United States and Iran reached a framework agreement to end the war. However, the report said traders now face a new question. They are watching whether Beijing will resume large-scale crude buying once the geopolitical premium fades.
Beijing’s Buying Remains a Key Factor
The New York Times report said China’s purchasing pattern remains a major swing factor for oil prices. Because China is the largest crude importer, any return to stronger buying could reverse part of the cushioning effect seen since February. Notably, the report said that influence may persist even as the immediate supply shock eases.
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