China's oil exports reached 1.16 million barrels per day in August 2026, representing a significant increase from 0.36 million barrels per day in May. This increase, along with the growth in oil refining capacity to 13.91 million barrels per day, indicates important developments in China's oil market.
Analysis of Oil Demand and Supply
In May, crude oil supply, including imports and domestic production, reached 12.16 million barrels per day, while refining capacity was 12.65 million barrels per day. However, in June, oil supply decreased to 11.53 million barrels per day, and refining capacity also dropped to 12.47 million barrels per day. In August, these figures increased to 13.27 million barrels per day for supply and 13.91 million barrels per day for refining capacity.
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These changes have occurred due to rising crude oil prices and challenges related to the Strait of Hormuz. In fact, the reduction in imports due to increased costs and access issues to crude oil has impacted production and export trends. Thus, one of the key factors in this market is the uncertainty in access to crude oil due to geopolitical developments.
Current Oil Inventory Status and Its Impact on the Market
The status of oil inventory in China also clearly reflects changes in the market. In the first quarter of 2026, China added 127 million barrels of oil to its inventory, but from April to August, 44 million barrels of that were reduced. By the end of August, China's oil inventory was 84 million barrels higher than at the beginning of the year, but this does not mean that all this oil remains in storage.
Analysis shows that 58 percent of this inventory has been consumed in the past five months. Given the current trend, it is expected that if this consumption continues, the remaining inventory will be depleted by late November. This could put further pressure on the market and affect prices.
It should be noted that exports of petroleum products, including gasoline, diesel, and jet fuel, have also increased, reaching 1.16 million barrels per day in August. This increase in exports reflects a change in domestic and foreign demand and could impact global oil prices.
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