China’s crude purchases plunge in June amid Middle East supply drop, higher prices
Chinese imports of liquefied natural gas rose 8.3 per cent year on year in June, while the country purchased nearly 30 per cent more coal in the month
China’s crude imports continued to fall in June, driven by a steep decline in shipments from the Middle East, while purchases of other energy sources recovered in a sign the country may be seeking to reduce reliance on volatile oil imports.
Chinese crude imports from Gulf nations plunged 76.1 per cent year on year in June by volume, according to customs data released on Monday.
China’s total crude imports declined 41.3 per cent year on year to 29.27 million tonnes in June.
“Weak refining margins, ongoing restrictions on refined product exports, and subdued domestic fuel demand continue to cap refinery throughput and, in turn, crude buying,” said Xu Muyu, a senior crude oil analyst at trade intelligence firm Kpler.
She noted that June’s import data largely reflected purchases made in March and April, when oil prices remained elevated.
“As a result, I expect China’s seaborne crude imports to remain relatively low through July to September,” Xu said.