Shanghai crude hits $121 on massive buying spree in China

Shanghai crude futures have surged past $121, driven by an aggressive wave of Chinese buying that has flipped the global oil market’s dynamics on its head. The rally marks a stunning reversal from earlier in 2026, when weak demand forced smaller Chinese refineries to shut their doors entirely. The Brent-Shanghai spread tells the story most clearly. In late April, it sat at roughly negative $20, meaning Shanghai crude was trading at a steep discount to its international counterpart. That spread has now swung to a positive $16 premium, a move of about $36 that reflects just how aggressively Chinese buyers have re-entered the market. From shutdowns to shopping spree Chinese seaborne crude imports are now trending toward approximately 10 million barrels per day, a figure that, while still below pre-conflict highs, represents a significant recovery. Domestic refining activity has picked up alongside the import surge, suggesting the demand rebound has substance behind it rather than just speculative stockpiling. The sourcing strategy behind these purchases is notably diversified. China has been pulling crude from Canada, Brazil, Argentina, and Russia, spreading its supply risk across mul...