Shanghai crude oil futures have exceeded $121 per barrel, following a period of low demand earlier in 2026 that caused closures among smaller refineries in China. This surge is attributed to a significant increase in purchasing activity by Chinese buyers.
The spread between Brent and Shanghai crude has shifted by approximately $36. In late April, Shanghai crude traded at a discount of roughly negative $20 compared to international benchmarks, but it now commands a premium of $16.
Chinese seaborne crude imports are currently approaching 10 million barrels per day. The country is diversifying its supply sources by importing oil from Canada, Brazil, Argentina, and Russia to mitigate supply risks across various trade routes.
Global crude markets are tightening due to geopolitical tensions in the Middle East, specifically regarding Iran and shipping security. Brent crude is currently trading between $97 and $100, with some projections indicating a potential rise toward $120.
Oman futures, a benchmark for Asian crude, reached $121.68. The Strait of Hormuz remains a critical factor, as it facilitates the transport of approximately one-fifth of global daily oil consumption, making regional stability a key driver for price volatility.
