Chinese crude oil imports fell to a minimum of 4 months in May – Commerzbank

The Chinese customs authority published data on crude oil imports at May at the beginning of the week. Imports fell to a minimum of 4 months of 46.6 million tons or 11 million barrels per day last month. In the previous month, 11.7 million barrels per day had still totaled. The fall is not a surprise, as we point out last Friday with respect to the significant fall in crude oil processing in April. According to China Oilchem, 2.6 million barrels of daily processing capacity were closed in May due to maintenance work. According to Kpler consultant, refineries have, therefore, reduced their oil supplies for May, says Commerzbank raw material analyst Carsten Fritsch.

The need to import crude oil could also remain moderate

“In addition, oil prices increased significantly throughout the month after a brief fall in early May, which has probably been attenuated by the weak import demand of China was also reflected in a significant reduction in official sales prices for oil shipments in May by Saudi Arabia. Due to the strictest sanctions of US Abstain from importing Iranian oil, even if there are no official data about this China.

“At the same time, China also exported fewer oil products in May. Exports amounted to 4.41 million tons. In the previous month, the figure was just over 5 million tons. In the previous year, it was almost 1 million tons higher. The last time that exports of oil products were at a lower level was in February. The customs authority will only publish detailed figures on specific oil products on a date posterior.

“However, they can also indicate a weaker demand in neighboring Asian countries, which hinders Chinese refineries export excess oil products. This would favor moderate processing margins in China and a crude oil processing, even if maintenance work has been completed. As a result, the need to import crude oil would also remain moderate, which would weigh on oil prices.”