China's oil refiners increased their processing rates in July, yet strong crude imports and domestic production resulted in a surplus of about 530,000 barrels per day. While this surplus is lower than June's figure, it indicates that China is still adding to its oil stockpiles, providing flexibility to reduce imports if global prices rise. Official data suggests that since March, China has been importing crude at a rate significantly higher than its domestic fuel needs, with much of the surplus likely going into storage. The future trajectory of imports will depend on price movements and refinery activity, as refiners may cut back purchases if prices climb, but continued high processing and fuel exports could support sustained import levels.