Chinese refiners slashed their run rates to the lowest level in four years, while crude oil imports collapsed to an eight-year low in May, according to Bloomberg’s analysis of official data. The average run rate stood at just 66.3% for the month, marking a steep retreat from typical operating levels.
Total volumes processed over the month dropped 9.1% year-over-year to 53.72 million tons, the data revealed. The decline follows earlier figures from China’s statistics agency that showed crude imports plunging to their lowest since 2018 in May, driven largely by the recent spike in global oil prices.
The import collapse reflects downstream weakness: independent teapot refineries cut throughput amid thinner margins and slower domestic fuel demand. State-owned giants also scaled back purchases, waiting for prices to moderate before rebuilding their strategic reserves.
This demand crunch from the world’s top crude buyer comes as OPEC+ producers tighten supply, creating a rare divergence between upstream output restraint and downstream processing cuts. The dual pressure raises questions about the near-term trajectory for global crude prices.
While price rallies may eventually curb refinery activity elsewhere, China’s slowdown—if sustained—could reshape global crude flows and pressure producers to reassess their output strategy. The data also adds weight to concerns about the health of the country’s industrial recovery, as downstream activity often mirrors broader economic momentum.