China’s crude oil imports fell 1.9% in 2024, data showed on Monday, the first annual decline in two decades outside of pandemic-induced falls, as tepid economic growth and peaking fuel demand dampened purchases.
Imports totalled 553.4 million metric tons, equivalent to 11.04 million barrels per day (bpd), according to data from the General Administration of Customs.
That compared with 2023’s record 11.28 million bpd.
Imports in December fell to 47.84 million tons, or 11.27 million bpd, from 11.81 million bpd in November and 11.39 million bpd in December 2023.
“China in 2024 was a let down with the market expecting steady to stronger growth from 2023. Deflationary pressures and transport electrification dampened growth,” said Emril Jamil, senior analyst with LSEG ahead of the data release.
China’s demand for key transportation fuels barely grew in 2024, as rapid electrification of its vehicle fleet displaced gasoline while a property sector crisis and lacklustre merchandise exports crimped demand for diesel.
Analysts said China’s demand for fuels, except those used as petrochemical feedstocks, peaked in 2023, as growth in aviation fuel failed to make up for the falls in gasoline and diesel.
Depressed fuel demand and narrowing refining margins have forced refiners, both state run and independents, to scale back crude throughput cutting into demand for crude oil.
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Chinese consultancy Oilchem estimated independent refiners in east China’s refining hub - Shandong province - operated at 53.66% of their crude oil processing capacity in 2024, down 8.3 percentage points from 2023.
Plant closures at PetroChina’s Dalian refinery, part of a relocation plan, and indefinite shutdowns at Sinochem Group’s Shandong refineries contributed to a decline in crude oil imports.
State giant Sinopec reported last October its gross refining margins for the first three quarters of 2024 stood at $5.65 a barrel, the second lowest since 2019, according to company reports.
Monday’s data showed China’s natural gas imports, comprising liquefied natural gas (LNG) and piped gas, rose nearly 10% to 131.69 million tons in 2024, a record high.
Imports in December came in at 11.56 million tons, up from November’s 10.8 million tons but lower than the 12.65 million tons in December 2023.
Exports of refined fuel products, which include diesel, aviation fuel, gasoline and marine fuel, totalled 58.14 million tons, down 7.2% from 2023, the data showed.
December exports at 3.73 million tons were the lowest in 2024 as companies ran short of export quotas.
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