WTI Finds Support as China's Crude Imports Rebound From Lows

China's oil imports are climbing off a decade-low base, and the effect is visible in premium pricing: Congo's Djeno crude now trades at a $20/barrel premium over ICE Brent, up from $15 just two weeks prior. Canadian, South American, and African crudes are all seeing similar strength as Middle East supply disruptions persist.

This demand recovery arrives alongside uncertainty over whether Iraq can genuinely challenge Saudi Arabia's output leadership, given Iraq's history of overstated production promises. Combined, these dynamics suggest physical barrel tightness is more acute than headline benchmark prices reflect.

For WTI, the read-through is constructive — a genuine Chinese demand rebound alongside contested Middle East output leadership creates a supportive floor, even as broader supply-side risks from Russia and Venezuela linger in the background.