China continues to dominate the global oil market as planned tariff adjustments trigger a disciplinary response, prompting processors to increase crude imports and increase refinery operating rates.

From mid-June, the top refining importers will provide tariffs on three oil-related items – bitumen mixes, light-cycle oils and blended aromatics – often used to make or process low-quality fuels. Faced with the expectation of expensive products, Chinese buyers are looking for barrels of suitable crude as a replacement.

Meanwhile, there are signs of a cascading effect. Spot differences for the Middle East and Russian crude have reached several-month highs, while spreads during Dubai crude have boosted expectations that China will continue its oil buying trend. Spreads are the main gauge of supply-demand balance.

“Asian spot markets are receiving temporary support from China’s recently announced tariffs on thin bitumen,” said Grayson Lim, a senior oil analyst at industry consultancy FGE. “Strong Asian spot activities should continue a few months ago as the crude balance is tight.”