The sharp decline in China's oil imports has made the country a key driver of demand in the global oil market. China's significant oil reserves have helped stabilize the global market following the onset of the conflict between the US and Iran in the Middle East, a topic discussed at an industry conference in Singapore.

China's Impact on the Global Oil Market

China plays a major role in balancing the global oil market by reducing imports and maintaining large reserves. The country is instrumental in regulating prices and supporting market equilibrium, especially in the second quarter of 2026.

Changes in Demand Structure

After the effective blockade of the Strait of Hormuz, China's oil imports dropped by about 4 million barrels per day, affecting roughly 20% of global oil and gas trade. China is expected to actively replenish its reserves to compensate for the stocks that have been used. Over the past decade, the country has steadily increased its strategic oil reserves.

While overall oil demand in China has not seen a sharp decline, there has been a shift in its structure. Demand from end-consumer segments is stabilizing, while the use of oil for petrochemical production is on the rise.

The Role of OPEC in Market Stabilization

The Organization of the Petroleum Exporting Countries (OPEC) remains crucial for stabilizing the global market. The organization is advised to focus on restoring production to pre-war levels and strengthening cooperation among member countries.