EnergyOilPrice.comJun 16, 2026· 1 min read
China's Refinery Activity Plunges Amid Collapsing Crude Imports
Chinese refinery run rates in May dropped to a four-year low of 66.3%, processing 9.1% less crude year-over-year. This decline coincided with crude oil imports falling to an eight-year low, driven by elevated international prices.
Chinese refiners significantly curtailed operations in May, with average run rates hitting a four-year low of 66.3%. This contraction reflects a 9.1% year-over-year decrease in total crude processing volumes, which fell to 53.72 million tons. The slowdown in refinery activity aligns with a sharp decline in China's crude oil imports, which reached an eight-year low in May.
Official statistics indicate that crude imports plummeted to their lowest level since 2018. This substantial reduction in import volumes is primarily attributed to rising international crude oil prices. The combined effect of reduced imports and lower refinery throughput points to a notable softening in China's immediate oil demand, impacting global energy markets and supply chains.
Analyst's Take
While the immediate impact points to softer Chinese demand, the sustained high global crude prices despite this significant demand shock suggest a deeper underlying supply tightness. This divergence could signal an impending inventory build in other regions or a price correction as the full extent of Chinese demand contraction becomes clearer in Q3.