China July crude imports fall 19.6% on year to 41.2m tonnes

SINGAPORE (ICIS)–China’s crude imports in July stood at 41.24m tonnes, down 19.6% year on year, recording its fourth straight month of decline, official data showed.

Total imports in the first seven month fell by 5.6% year on year to 301.8m tonnes, according to China Customs.

The decline was largely caused by a high base in the previous corresponding period.

In June and July last year, China’s oil imports hit record highs as buyers rushed to the market following a price slump.

China’s crude imports in August are unlikely to stay high as refiners are cutting operating rates amid high inventories and bearish demand outlook of oil products, according to ICIS senior analyst Yu Yunfeng.

“Ongoing COVID-19 containment measures in some provinces, typhoon and rain season in coastal regions are expected to continue dampening domestic gasoil and gasoline demand,” she said.

“Moreover, some independent refiners’ crude import quotas shortage and PetroChina’s distillates export quotas shortage will also constrain operating rates of independent refiners and PetroChina’s subsidiary refiners in August,” she added.