BEIJING: China’s crude oil imports in August surged by 30.9% from a year earlier, customs data showed on Thursday, as refiners built inventories and increased processing to benefit from higher profits from exporting fuel.
Shipments last month to the world’s biggest oil importer were 52.8 million metric tons, or 12.43 million barrels per day (bpd), the data from the General Administration of Customs showed.
In line with much of the rest of this year, the figures were significantly above the 9.50 million bpd imported in August last year, when China’s domestic fuel demand was suppressed by widespread curbs to tackle the COVID-19 pandemic.
Crude imports jumped 20.8% from July’s figure of 10.29 million bpd, returning to just below the daily level in June.
While domestic demand for some transport fuels such as kerosene and gasoline was expected to remain relatively strong through the summer travel season, the broader outlook for China’s economy remains gloomy, with a weaker property sector and sluggish domestic consumption weighing on fuel demand.
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The poor macroeconomic backdrop, combined with robust refinery runs, indicated that China has built product inventories through the month, analysts said.
“China has built up not only its crude oil stocks, but also its petroleum product stocks, particularly diesel,” analysts from Citi said in a client note.
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