Crude oil processing at China’s refineries in June fell 18% year-on-year to 51 million tons, the lowest figure...

Crude oil processing at China’s refineries in June fell 18% year-on-year to 51 million tons, the lowest figure since March 2020. The decline came after China’s crude oil imports in the same month dropped to near the lowest level in nearly a decade.

According to Bloomberg, independent refineries in China, which control up to a third of the country’s capacity and rely on cheaper Iranian oil, have been hit the hardest, with their operating rates reaching the lowest level in nine years.

A drop in China’s demand, which typically supplies half of its crude oil purchases from the Middle East, had so far helped cushion the supply shock caused by the war.