Retail sales growth slumped to 0.6% in July, missing the 1.5% forecast and trailing the 1% growth seen in June. Industrial output mirrored this cooling trend, rising 4.5% against the 4.8% analysts anticipated. This sluggish start to the third quarter follows a second-quarter GDP expansion of just 4.3%, the weakest performance since 2022.

Despite the domestic slowdown, China remains a strategic accumulator of energy. By capitalizing on lower prices to stockpile reserves, the world’s largest oil importer has effectively cushioned its economy against supply chain disruptions linked to the Middle East crisis. This opportunistic buying helped stabilize global oil prices, creating a temporary ceiling for the market. Analysts caution, however, that this accumulation is not infinite. When China eventually shifts its focus back to active market procurement, the resulting demand could exert significant upward pressure on global prices.