China’s decision to cut back on crude oil imports has helped keep global oil prices lower, easing pressure on countries like Australia.

During recent Middle East tensions, China relied on its massive oil reserves instead of buying as much oil from international markets.

That reduced global demand and prevented a much sharper spike in crude oil prices.

Lower oil prices help keep Australian petrol costs and inflation from rising even further.

However, analysts warn this relief may be temporary if China returns to buying large volumes of oil in the coming months.

Any increase in China’s oil demand could directly impact global fuel prices.

Economists say Australia is closely watching global oil markets as they remain a key factor influencing household budgets and the broader economy.

And also, economists say Australia is closely watching global oil markets as they remain a key factor influencing household budgets and the broader economy.