Chinese Oil Imports Reach Yearly High in August

According to analysts at Bank of America, Chinese oil imports reached a yearly high in August despite weak domestic throughput.

In a note to clients on Monday, analysts highlighted customs data indicating that China’s crude oil arrivals totaled 49.1 million metric tons in August, which translates to approximately 11.56 million barrels per day (bpd). This level marked the highest monthly total since August 2023 and an increase from 9.97 million bpd in July, a figure considered the lowest in nearly two years.

The analysts speculated that the increase in imports was likely linked to preparations for the public holidays in early October. However, they also pointed out that throughput remained “subdued,” with 59.1 million metric tons (or 13.9 million bpd) processed in August. This throughput figure remained flat compared to July but represented a 9% decline from the same month last year.

Concerns about weak economic performance in China have limited recent gains in crude prices, despite ongoing tensions in the Middle East and potential supply disruptions from the U.S.

On Tuesday, Beijing announced new stimulus measures aimed at revitalizing economic activity. Investors have been urging Chinese officials for these measures, although reports indicate that the support might not reach the significant level desired by the markets.

The People’s Bank of China (PBOC) announced a cut in reserve requirements for banks by 50 basis points to increase liquidity. Additionally, the government plans to lower mortgage rates for existing loans to assist the struggling property market. The PBOC also reduced a short-term repo rate on Monday to further enhance liquidity.

(Reuters contributed to this report.)