China's oil refineries face strain as global crude prices surge

China's oil industry, including its large state-owned companies and smaller independent 'teapot' refineries, is under pressure as global crude oil prices rise. This is happening due to supply disruptions linked to the war in Ukraine and broader market turbulence, leading at least one major refiner to cut its activity by 10%.

Chinese officials have warned that further escalation in the Middle East could threaten global energy security. Meanwhile, the country is maintaining its overall economic easing policies, and the recent oil price surge is contributing to a rise in consumer prices, partly offsetting previous deflationary trends.