Three months into the biggest oil supply disruption in modern history, China appears to have discovered something that should make oil bulls at least a little uncomfortable.

China has begun drawing from its vast crude oil inventories to reduce expensive imports and cushion the impact of the global supply disruption caused by the Middle East conflict.

China's crude oil imports dropped 29% to an eight-year low during the Iran war, keeping Brent crude under $100 as Beijing drew down strategic reserves.