BEIJING: China's crude imports rose a stronger-than-expected 7.4 percent in September from a year earlier, even as demand growth in the world's largest energy consumer remains subdued, suggesting the country may be boosting its reserves, analysts said.
The International Energy Agency (IEA) last month revised down its forecast for China's oil demand growth in 2014 for the fourth time this year, estimating demand would rise just 2.4 percent, compared to 3.6 percent predicted in January.
September crude imports rose to 27.58 million tonnes, or 6.7 million bpd, up 13.1 percent on a daily basis from August, and well above an average of 5.73 million bpd over the preceding three months.
For the first nine months of the year, China's crude imports rose to 228.50 million tonnes, or 6.11 million bpd, up 8.3 percent from the same period last year, the customs data showed.
The September figure was the second highest on record, since figures began to be kept in 2006, while imports have now reached 6 million bpd for six out of the last 12 months. Analysts had expected September imports to be flat on August, but the rise could mean China was boosting its reserves.
"A big chunk could be going to fill the strategic oil reserve, which has nothing to do with underlying demand," said Simon Powell, head of Asia oil and gas research at CLSA in Hong Kong, who prefers to focus on demand data. The September figure could also indicate that China's domstic oil production growth has not been "robust", he said.
"Any increased demand because of low prices would be on the margin," Powell added, noting that China had also been filling its strategic petroleum reserve (SPR) when world market prices were high. China generated a surplus of more than 400,000 bpd in the first eight months of the year, based on a Reuters analysis of Chinese government data.
China rarely discloses information about its strategic reserves.
China also imported 2.47 million tonnes of oil products in September and exported 2.15 million tonnes, leaving net oil product imports at 320,000 tonnes, customs data showed.
China has became net oil product exporter in four months this year, mostly recently in August, as a result of sluggish demand and high crude runs.
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