China is set to reemerge as a major force in global oil markets beginning in August after a sharp drop in crude imports earlier this year amid the war in Iran, according to research from JPMorgan cited by CNBC.
The bank's outlook comes after an unusually weak period for Chinese crude imports. JPMorgan estimates that China's oil purchases fell dramatically following supply disruptions linked to the war in Iran, forcing Beijing to draw down inventories and rely more heavily on existing reserves. Imports dropped to about 7.8 million barrels per day in May, their lowest level since late 2017.
