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China's oil imports in August rose for the second consecutive month as a result of easing fuel export controls

Customs data released Tuesday showed that China's crude oil imports were up from July but down 23.4% compared to a year ago.

After restricting exports of refined oil products since March in order to protect domestic supplies, the world's largest oil buyer imported 14.6% less oil than it did a year ago. Domestic consumption also fell due to higher prices.

The second consecutive month saw a month-on-month increase in oil imports. However, China has eased its controls on refined oil since July.

China imported?37.93 millions metric tons or 8.93million barrels of oil per day, an increase of 6.2% from July.

According to Kpler, a ship-tracking company, onshore oil inventories fell by 550,000 barrels a day in August. This is compared to 80% drop per day that occurred in July.

Muyu Xu is a Kpler analyst. He said that imports would gradually improve after September. However, seaborne imports are expected to remain between 8.5 and?9 millions bpd. Inventory declines will also slow down.

China's refined product exports, which include gasoline, diesel and kerosene, reached 6.01 million tonnes in August. This is a 29% increase month-on-month and surpassed the 5.33 millions tons of August last year.

Emma Li, an analyst with the ship-tracking company Vortexa, said: "The increase in crude imports month-on-month is in line a surge in fuel exports during August and continued exports throughout September."

Vortexa anticipates exporting at least 3,000,000 tons of transportation fuel to other destinations than Hong Kong by September. This is a 50% increase from the same month last year.

China's first-eight months refined oil exports totaled 34.24 millions tons, down 9.6% compared to the same period last.

According to Oilchem, domestic transportation fuel consumption has also improved slightly from July. Gasoline demand was 12.6 million tonnes and diesel demand 15.48 million tonnes in August.

According to Oilchem, the demand for gasoline and diesel was still down by 8% and 10%, respectively, compared to a year ago.

Chinese customs data showed that China's natural-gas imports, including LNG and pipeline gas in August, were?at 10,33 million tons. This is a 12.9% decrease from the previous year.

Natural gas imports in the first eight-month period were 78.23 millions tons, a 4.4% drop on an annual basis.

(source: Reuters)