China imported 9.97 million barrels of oil per day last month, a 12% decrease from June’s number and a 3% decrease from July 2023’s daily import average. The fall in July comes after an 11% yearly decline in June’s reported crude oil imports, albeit from a record high planned for June 2023. Data released in early July by China’s General Administration of Customs indicates that during the first half of 2024, there was a 2.3% decrease in crude arrivals compared to the same period the previous year.
A post on the import data stated that the decline in imports was caused by China’s declining refining margins in the face of a decline in gasoline demand, which prompted output cuts. The nation’s independent refiners ran at a pitiful 56.11% of capacity last month, the lowest since 2021, according to statistics from Chinese consultant Oilchem. To stop the bleeding, several refineries that were even experiencing losses had to close permanently.
China is the world’s top crude importer, and its diesel demand has been negatively impacted this year by the crisis in the real estate sector and the growing use of LNG in trucks. These factors have been major contributors to the expansion in global demand for oil over the past few years.
Analyst forecasts indicate that while the demand for petrol may be plateauing, the demand for diesel is declining. Analysts in a recent study predicted that China’s diesel demand would fall by 2% to 7% annually in the second half of 2024.
