China July Crude Imports Rebound 22 Percent to 8.45 Million Barrels Per Day as Sinopec Locks In Russian ESPO

China's crude oil imports rebounded to 35.73 million metric tons in July, equivalent to 8.45 million barrels per day, according to customs data reported by Bloomberg and published through Rigzone on August 7. That marks a 22 percent increase from June's 6.2 million barrels per day, the lowest monthly average since November 2015. The June trough reflected elevated prices and the near-total closure of the Strait of Hormuz, which handles approximately 20 percent of global seaborne oil trade. July's recovery came as a US-Iran memorandum signed on June 17 briefly reopened Hormuz transit before the truce collapsed on July 8.

Chinese refiners used the June-to-July window to accelerate crude purchases while shifting a larger share of sourcing to Russia, whose crude avoids Hormuz entirely. Indian refiners pivoted toward West African barrels to replace Middle Eastern crude, reducing competition for Russian grades and easing access for Chinese buyers. The combined effect pushed July's volumes well above June's depressed pace. Total July imports remained below July 2025 levels, according to Bloomberg data, reflecting how much of the year's demand potential has been lost to the ongoing crisis.

Sinopec Secures Up to 320,000 Barrels Per Day of Russian ESPO

Sinopec, China's largest refiner, has acquired between 30 and 40 shipments of Russia's Eastern Siberia-Pacific Ocean crude, known as ESPO, for delivery between July and September, according to Bloomberg trade data. Sinopec is the primary refining arm of state-owned China Petroleum and Chemical Corporation. At standard cargo sizes, that volume represents 241,000 to 320,000 barrels per day of additional Russian supply reaching China via Pacific routes. ESPO loads at Kozmino Port on Russia's Pacific coast and reaches Chinese terminals without passing through any Middle East chokepoint.

The cost impact of July's import rebound is substantial. June imports at 6.2 million barrels per day over 30 days total approximately 186 million barrels. July's 8.45 million barrels per day over 31 days totals approximately 262 million barrels. At a reference Brent price of $82 per barrel, the additional 76 million barrels purchased in July compared with June represent roughly $6.2 billion in additional crude spending for the month.

Strategic Reserves Give Chinese Refiners Flexibility Despite Supply Shock

China held approximately 1.397 billion barrels in strategic and commercial petroleum reserves as of end-2025, according to Bloomberg estimates. That stockpile exceeded the combined reserves of the United States, Japan, OECD Europe, Saudi Arabia, South Korea, Iran, the UAE, and India. The depth of those reserves allowed Chinese refiners to draw down inventory during the June import trough without triggering domestic supply shortfalls. It also gave state-owned refiners time to negotiate longer-dated ESPO contracts before August's renewed Hormuz closure created fresh urgency.

August Faces Renewed Hormuz Headwinds as Truce Collapsed

The June 17 US-Iran truce that enabled July's recovery broke down on July 8, and the Strait of Hormuz has since returned to an effective closure. The current week's vessel transit count of 33 confirms the strait is operating at roughly 3 to 4 percent of its pre-war throughput. China's natural gas imports fell 0.9 percent year over year in July, reflecting disrupted liquefied natural gas flows from Qatar, whose shipments pass through Hormuz. Coal imports rose 20 percent year over year to 42.73 million tons in July, partly substituting for constrained LNG supply, according to Bloomberg customs data.

The Oil Authority's prior analysis of WCS widening traced part of the Canadian heavy crude discount to weakened Chinese demand during the Hormuz closure. The July customs data confirms that the demand recovery did materialize when the Hormuz window briefly opened. Whether August sustains that pace depends on progress toward the Iran-Oman safe-corridor agreement that both countries are actively negotiating.