Chinese state-owned refiners are reportedly considering resuming crude imports from the United States after a nine-month suspension, driven by a worsening energy supply crisis in the Middle East, according to S&P Global’s Platts.
The additional 20% tariffs on US crude remain in place, but market analysts and refinery sources suggest these may be temporarily set aside if disruptions persist.
“Beijing may even temporarily exempt the additional tariff on US energy if the supply crisis continues, as this would constitute a national emergency,” a Beijing-based market analyst told Platts, citing the country’s heavy reliance on US ethane, which is already tariff-exempt.
Last Thursday, Chinese authorities instructed the nation’s largest oil refiners to suspend exports of diesel and gasoline to secure domestic supplies, Bloomberg News reported, as the war in the Middle East threatens to exacerbate an energy crunch.
An eastern China refining source echoed the urgency, noting that the government must ensure stable domestic fuel supply.
Shipping data reviewed by Platts indicates that around eight crude cargoes from the US Gulf Coast could be delivered to China in the coming weeks, most likely comprising light sweet crude such as WTI Midland.
One cargo was loaded as of March 7.
Trade sources cautioned that shipments could still be diverted if supply conditions ease.
The move comes amid soaring energy prices, with NYMEX front-month crude surging $20.34 to $111.24 per barrel on March 8 due to infrastructure disruptions in the Middle East.
Freight rates for the 270,000-metric ton US Gulf Coast-China route have slightly declined to $26 million per shipment from a record $29.3 million on March 4, Platts said.
Before the conflict, Chinese refiners had largely avoided US crude due to tariffs, which previously made imports uneconomical.
A South China-based refining source estimated that buying US crude would have meant a loss of about $30 per barrel, after accounting for freight and tariffs.
“Every available barrel in the world is under consideration,” a Beijing-based procurement strategist from a state-run refining group told Platts.
“Supply risk is rising, as the duration of the Middle East war may be longer than previously expected.
Commercial inventories are limited, so we must look for anything available.”
China’s state-owned refineries are mandated to prioritize domestic energy supply over profits, according to market sources.
Despite suspending US crude imports since June 2025 cutting annual trade flows by 72.6% year-on-year onshore crude reserves reached a record 1.32 billion barrels on March 5, up from 1.31 billion barrels on February 26, according to Ursa Space data.
The government has also instructed refineries to reduce refined product exports to conserve crude.
Amid these energy concerns, China has reiterated that Iran’s appointment of Mojtaba Khamenei as the country’s new supreme leader following the death of his father, Ali Khamenei, is a domestic matter.
Beijing opposes any attempt to target the new leader, reflecting its strategic partnership with Tehran and its broader call for regional stability.
The escalating Middle East conflict, combined with supply chain disruptions and soaring crude prices, is prompting China to explore all options to secure its energy needs, including a potential temporary resumption of US crude imports.
