China turns top global crude importer in first quarter
Buying was boosted by stockpiling and purchases by the country’s independent oil refiners, which raised their processing of imported crude to a record last month
China’s record oil imports in March helped it top the US as the world’s biggest buyer during the first quarter as stockpiling and aggressive buying by refiners coincided with slumping domestic production.
The world’s largest energy consumer imported 9.21 million barrels a day, up 11 per cent from February, according to Bloomberg calculations based on data Thursday from the General Administration of Customs. Shipments during the first quarter rose 15 per cent to almost 105 million tonnes, or about 8.5 million barrels a day. The US imported almost 8.15 million during the first three months, Bloomberg calculations using weekly data show.
While the jump in March was seen as temporary, growing use of transportation fuels, new refineries and an organisation of petroleum exporting countries definition.
Buying last month was likely boosted by stockpiling and purchases from the country’s independent oil refiners, which raised their processing of imported crude to a record last month, according to analysts from ICIS China, Citigroup and Energy Aspects.
“We could see a sharp drop in April following this surge,” Li Li, a research director with ICIS China, said by phone.
March shipments will result in a “fairly high” stockpile buildup and likely flowed into tanks leased for the country’s strategic petroleum reserves as the start of the newest government-owned storage is delayed, Citigroup analysts including Tracy Liao said in a note Thursday.
