State-run refiners may overlook tariffs and seek American oil for the first time in nine months as the escalating Middle East crisis tightens global energy markets…..
Chinese state-owned oil refiners are considering resuming crude imports from the United States after a nine-month halt, as the deepening conflict in the Middle East raises fears of a global energy supply crunch.
According to a report by S&P Global’s S&P Global Platts, refinery officials and market analysts say Chinese buyers may begin sourcing American crude again if disruptions in the Gulf persist.
Although China still imposes an additional 20 percent tariff on U.S. crude imports, industry insiders say the levy could be temporarily overlooked if supply pressures intensify.
A Beijing-based market analyst told Platts that the government could even consider temporarily waiving the tariff in an emergency situation.
“Beijing may even temporarily exempt the additional tariff on US energy if the supply crisis sustains, as this will be a national emergency,” the analyst said.
He pointed to ethane as an example, noting that China already exempts U.S. ethane from additional tariffs because the country depends heavily on American supplies.
The discussions come as the escalating conflict in the Middle East continues to threaten global oil flows and push prices sharply higher.
Last week, the Chinese government reportedly instructed its largest oil refiners to halt exports of diesel and gasoline, according to a report by Bloomberg, citing people familiar with the matter. The move is intended to preserve fuel supplies for domestic consumption as energy markets grow increasingly volatile.
A refinery source in eastern China underscored the urgency of the situation.
“The government needs to figure this out to sustain supplies for domestic consumption,” the source said.
Shipping data reviewed by Platts suggests that as many as eight crude cargoes from the US Gulf Coast could be heading toward China. Most of the shipments are expected to consist of light sweet crude grades such as WTI Midland crude.
One cargo had already been loaded on March 7, although traders noted that shipments could still be diverted if market conditions change or if supply concerns ease.
The potential return to U.S. crude comes as global oil prices surge amid growing geopolitical risks.
Front-month crude futures on the New York Mercantile Exchange jumped by more than $20 to $111.24 per barrel on March 8 following disruptions to energy infrastructure linked to the Middle East conflict.
Freight rates for transporting crude from the U.S. Gulf Coast to China on very large crude carriers have also remained elevated. The cost for a typical 270,000-metric-ton shipment recently fell slightly to around $26 million for cargoes loading between late March and April, down from $28.5 million earlier in the month.
Before the escalation in the Middle East, freight rates on the route had fluctuated widely but were generally much lower.
Historically, Chinese refiners had largely avoided U.S. crude due to the combined impact of tariffs and shipping costs.
A refining source in southern China previously estimated that importing American crude would result in a loss of roughly $30 per barrel once freight and tariff costs were included.
But the rapidly shifting market dynamics are forcing refiners to rethink their strategy.
When asked about the possibility of resuming U.S. imports, a Beijing-based feedstock procurement strategist from a state-run refining group said the situation had changed significantly.
“We are considering it. Tariffs aren’t a big deal anymore, the freight rates are even higher than the tariffs,” the strategist said.
He added that Chinese buyers are now evaluating every potential source of crude supply.
“Every barrel available in the world is under our consideration,” he said, warning that supply risks could increase if the conflict drags on longer than expected.
Another strategist from a separate state-owned refining group said domestic inventories could provide only temporary relief.
While China can draw from commercial stockpiles, those reserves are limited, meaning refiners must actively search for alternative supply sources.
Market sources say China’s state-owned refineries are also required to prioritise domestic energy security over profit margins during periods of supply stress.
Imports of U.S. crude had previously been suspended in June 2025 amid escalating trade tensions between the two countries, leading to a sharp drop in shipments.
Annual flows fell by more than 70 percent year-on-year to just 2.29 million metric tons.
Despite the slowdown in imports, China’s crude inventories have remained robust. Data from Ursa Space Systems shows that onshore crude stockpiles reached a record 1.32 billion barrels on March 5, slightly higher than the 1.31 billion barrels recorded the previous week.
Authorities have also directed refineries to cut refined fuel exports in order to conserve crude supplies.
Analysts say that if disruptions linked to the Middle East conflict continue, China is likely to rely on a combination of stockpiles and opportunistic purchases from global suppliers, including potentially the United States.
Meanwhile, Beijing also responded to political developments in Iran, saying on Monday that the decision by Mojtaba Khamenei to assume the role of supreme leader following the death of his father, Ali Khamenei, was an internal matter for Iran.
China added that it opposes any attempt to target Iran’s new leadership, as tensions across the region continue to escalate.
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