China Crude Imports Fell in March as Buyers Drew Down Stockpiles Amid Iran Disruption

China is likely to resume buying large volumes of oil within weeks after drawing down inventories during the peak of the Iran supply disruption, according to Marco Dunand, chief executive of Mercuria. Dunand stated at the FT Commodities Summit that China has been drawing from commercial stocks accumulated ahead of the crisis.

He added that China effectively stepped back from the oil market as prices surged and Middle East flows tightened.

Com reported that this sell-off is a critical part of the recent market balance. China entered 2026 with a sizable buffer after stockpiling heavily through 2025. China added roughly 1 million barrels per day to storage through 2025 when prices hovered near $60, according to data cited in the report.

98 million tons. 9% year-on-year due to earlier stockpiling. China's LNG imports dropped 22% in March 2026, as buyers pulled back at higher prices.

Com reported that China has released stored crude into the system, offsetting part of the loss from the Middle East during the disruption. Dunand stated that China will need to return to the oil market to maintain refinery runs once inventories are drawn down to operational levels. He put the timeline for China returning to the oil market at roughly three weeks.

When that return happens, the market balance shifts again, as China is the world’s largest crude importer and its resumption of large-scale buying would add demand back into a market dealing with constrained supply and elevated prices, according to the report. com noted.