How China Saved the Global Oil Market

TL;DR

Global crude oil prices remain below $100 a barrel, defying expectations despite the ongoing closure of the Strait of Hormuz.
China's 'Beijing Swing,' a reduction of 5.4 million barrels per day in crude oil imports, has largely absorbed the supply shock.
This import cut brought Chinese crude imports to their lowest level since 2015, significantly impacting global demand.
The reduction in imports is attributed to decreased refining activity (explaining about half) and potentially draws from commercial and strategic stockpiles (explaining the other half).
Opacity in Chinese data makes precise tracking of the 'Beijing Swing' challenging.
The ongoing conflict in the Strait of Hormuz and potential Houthi blockades in the Red Sea continue to pose risks to oil supply routes.
There's a growing trend towards 24/7 oil derivative contract trading, driven by weekend geopolitical events.
U.S. Strategic Petroleum Reserve (SPR) stocks have fallen to historic lows, sparking debate about its drawdown capacity.

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