OPINION | China pulls a surprise by quietly rebuilding crude reserves in July

China adjusts

China's imports of 8.41 million bpd in July were up from the decade-low of 7.12 million in June, but were still more than three million bpd below pre-war levels.

To compensate for the lower imports, China has cut refinery processing rates, but they are still at levels sufficient to meet domestic demand.

China has instead cut exports of refined products, with shipments of 4.65 million tonnes in July being only marginally higher than the 4.36 million tonnes in June. For the first seven months of the year fuel exports dropped 13.1 per cent to 28.25 million tonnes, according to customs data.

Beijing placed restrictions on fuel exports shortly after the start of the Iran war, a measure aimed at ensuring domestic supply, but also one that allowed China to dramatically cut crude imports without dipping too far into stockpiles.