Chinese Oil Imports Reach Yearly High

Chinese oil imports may have hit a yearly high in August, but throughput in the country remains weak, according to analysts at Bank of America.

In a note to clients on Monday, the analysts noted that customs data showed the world's largest crude importer saw arrivals of 49.1 million metric tons in August, or roughly equivalent to 11.56 million barrels per day.

This was the highest monthly level since August 2023 and an increase from 9.97 million bpd in July, which itself was the weakest total in about two years.

The analysts at Bank of America argued that the uptick was likely due to preparations for the upcoming public holidays at the beginning of October.

However, they also flagged that throughput is still "subdued," with a total of 59.1 million metric tons, or 13.9 million bpd, processed in August. This figure is flat versus July but down by 9% compared to the year-ago period.

Concerns over the impact of a sluggish economic performance in China have helped to limit recent gains in crude prices, which have been sparked by ongoing tensions in the oil-rich Middle East and potential disruptions to US supplies.

On Tuesday, Beijing unveiled a raft of new stimulus measures aimed at boosting economic activity. Investors have long urged Chinese officials to roll out such measures. However, it remains uncertain if these moves represent the massive "bazooka" in aid that markets had been seeking, according to Reuters.

The People’s Bank of China (PBOC) has announced that it is set to cut reserve requirements for banks by 50 basis points to unlock more liquidity. The government is also reducing mortgage rates for existing loans in an attempt to support the ailing property market. Additionally, the PBOC slashed a short-term repo rate on Monday to further bolster liquidity.

(Reuters contributed to this report.)