Podcast - China returns to the crude market, but domestic demand remains soft

China's recent return to the crude market has raised several questions: could renewed buying become the next major catalyst for crude prices, is Middle East disruption changing China's sourcing strategy, and do higher refinery runs point to a genuine recovery in domestic demand?

In the latest episode of Mysteel Commodity Flux, Liao Na, Chief Consultant of Energy Policies, breaks down the drivers behind these shifts. Recent crude buying has been supported by inventory rebuilding, rising product exports and improving refining margins, while gasoline and diesel consumption remain soft. At the same time, supply uncertainty in the Middle East is encouraging greater diversification in China's crude sourcing, although Gulf barrels remain important to refining economics.

The episode also looks at why higher refinery runs should be read carefully. Stronger margins, export demand and low product inventories are supporting throughput, making refinery activity an important signal for product markets rather than a straightforward indication of stronger domestic oil consumption.

For deeper insight into China's crude flows, refinery activity, export quotas and energy policy direction, contact us at inquiries@mysteel.com for a sample issue of the latest China Policy Perspective Report.

Listen to the full episode on Spotify now: https://open.spotify.com/episode/5qcmWzNycUILK2GPoznBrV?si=ya1e0PjATiCjVuLx5NGHPQ