China Energy Imports Drop in April Amid Iran War as Fuel Exports Hit Decade Low

China’s oil imports fell to the lowest level in almost four years in April as the closure of the Strait of Hormuz choked off supplies to the world’s largest oil importer. Crude oil imports fell 20% in April to 38.5 million metric tons compared to a year earlier, hitting their lowest level since July 2022, according to customs data released on Saturday. China imports roughly half of its crude oil from the Middle East, where the closure of the strait has slashed the number of tankers ⁠carrying oil and ⁠refined products to the world. Saturday’s data from China does not distinguish between oil arriving by sea and oil coming in via pipeline. Data from ship-tracking firm Kpler, however, puts seaborne crude imports at 8.03 million barrels per day, also the lowest since July 2022, Reuters reported. Despite the decline in imports, ⁠ship tracker Vortexa estimates crude inventories rose by 17 million barrels in April, although it said those would fall in May. The disruption in the Middle East has led China to tightly manage exports of refined products such as gasoline or jet fuel to protect its domestic market. That policy drove refined oil product exports for April down to their lowest in roughly a decade at 3.1 million tons, down by about a third since March. This may still overestimate ⁠how ⁠much is going to customers in Asia and elsewhere because the data includes shipments to Hong Kong, typically a major destination for China’s refined products and excluded from the export controls. Natural gas imports also fell by 13% to 8.42 million tons, although the data does not separate seaborne liquefied natural gas (LNG) from gas piped overland. China imports significant quantities of LNG from the Middle East Gulf. China’s crude oil imports for the first four months of the year are still tracking 1.3% above last year’s level at 185.3 million tons.