# China Oil Buying Pause and Global Price Shifts

**Published:** 2026-05-30T23:00:00.000Z  
**Topic:** Oil  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/f98bde3b-10bc-489b-a601-16536ce83f96

Brent crude fluctuates near $95 as Chinese refiners reduce purchases and tankers divert to India amid Middle East conflict and supply fears.

Brent crude oil futures fluctuated around $95 per barrel on June 2, 2026, as traders weighed conflicting signals regarding a potential US-Iran peace agreement and the status of the Strait of Hormuz [1]. While prices have dropped 16.53% over the past month, they remain 45.55% higher than a year ago, a volatility driven by supply disruptions and shifting demand from major consumers [1]. Recent reports indicate Chinese refiners have reduced overseas purchases, causing a diversion of tankers toward India as regional supply chains adjust to the crisis [2][5].

**Key takeaways**
*   Brent crude traded near $95 on June 2, 2026, remaining significantly higher than the previous year despite a monthly decline [1].
*   Chinese refiners have cut overseas oil purchases due to price surges, relying on inventories estimated at over a billion barrels [2].
*   At least seven oil tankers originally bound for China have diverted to India, where Russian crude imports surged nearly 50% in March [5].
*   Trading Economics forecasts Brent to trade at $105.62 in 12 months [1].

## Geopolitical Risks and Price Fluctuations
Market uncertainty persists as President Donald Trump stated that a memorandum of understanding to reopen the Strait of Hormuz could be reached within a week, though Iranian news agencies raised doubts about progress in negotiations [1]. The waterway is critical for global energy, with the potential to block up to 15 million barrels of crude oil daily if the halt continues [3]. Analysts have warned that in a worst-case scenario, oil prices could surge to $100 a barrel, posing trouble for developed economies already facing inflation and cost of living crises [3]. Despite these risks, Trading Economics global macro models expect Brent to trade at $92.30 by the end of the current quarter before rising to $105.62 in 12 months [1].

## Tanker Diversions and Asian Demand Shifts
As prices surged, data from analytics firm Kpler indicated that Chinese refiners reduced their purchases of oil from overseas [2]. This pause has led to visible shifts in shipping logistics, with at least seven tankers carrying Russian crude switching destinations mid-voyage from China to India [5]. One vessel, the Aqua Titan, originally headed for the Chinese port of Rizhao, turned toward India's New Mangalore Port

## Sources
1. Tradingeconomics — [Brent crude oil - Price - Chart - Historical Data - News](https://tradingeconomics.com/commodity/brent-crude-oil)
2. Prometheus — [China’s Oil Buying Pause Won’t Last Forever – Prometheus Institute](https://prometheus.org/2026/05/31/chinas-oil-buying-pause-wont-last-forever/)
3. Theguardian — [What is the strait of Hormuz and why is it crucial for oil... | The Guardian](https://www.theguardian.com/business/2026/mar/01/us-israel-strikes-iran-oil-price)
4. Business Insider — [Crude Oil Price Today | Brent OIL PRICE CHART | Markets Insider](https://markets.businessinsider.com/commodities/oil-price)
5. Timesofindia — [Oil Tankers India Diversion: 7 China-bound oil... - The Times of India](https://timesofindia.indiatimes.com/india/7-china-bound-oil-tankers-now-headed-for-india-says-report/articleshow/129664977.cms)
6. Worldstopexports — [Top Crude Oil Suppliers to China 2025](https://www.worldstopexports.com/top-15-crude-oil-suppliers-to-china/)

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Cite as: TrendWatcher, "China Oil Buying Pause and Global Price Shifts", https://www.trendwatcher.in/article/f98bde3b-10bc-489b-a601-16536ce83f96