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World2 hr ago

China's Oil Imports Drop Sharply, Helping Stabilize Global Energy Markets

By TrendingWire Newsroom

China's crude oil imports fell to their lowest level in nearly a decade in June, a move that has helped keep global energy prices from spiking during renewed fighting between the US and Iran in the Strait of Hormuz. According to Chinese customs data released Tuesday, imports totaled 29.27 million tonnes, a 41% drop from the same month last year. This is the lowest figure since October 2016. China is the world's largest oil importer, purchasing an average of 11.6 million barrels per day last year. The sharp reduction in imports is due in part to the country's economic slowdown, as well as a shift toward coal. Coal imports surged 30% to a five-month high in June, customs data showed. The decline in Chinese oil demand has helped contain oil prices despite escalating conflict between the US and Iran. The two sides had signed a temporary ceasefire agreement, but recent weeks have seen renewed attacks. Iran has struck vessels from Saudi Arabia, Qatar, and the UAE in the Strait of Hormuz, while the US has reimposed a blockade on Iranian ports. Oil prices have risen from $69 to $79 per barrel, but the increase remains relatively moderate. In the US, gas prices fell 10% in June, providing some relief to consumers. Experts say China's reduced imports are a key factor preventing the war from causing a global energy crisis.

Sources: Middle East Eye
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