From Reuters via Rigzone:
China's May Crude Oil Imports Drop, Knocked Off Top Buyer Spot
China's oil imports fell about 11 percent in May from a year ago in the steepest drop since November 2013, likely knocking the country off its perch as the world's top crude buyer - a spot it claimed for the first time in April.More on a potential pickup in Chinese imports from Bloomberg:
Lower imports by China, at a time when markets are expected to be oversupplied following OPEC's decision to keep its output targets unchanged, dragged down global crude prices on Monday.
China imported 23.24 million tonnes of crude in May, data from the General Administration of Customs showed. This puts China behind the United States, which imported just under 30 million tonnes last month, according to calculations based on data from the U.S. Energy Information Administration.
On a daily basis, China's imports hit 5.47 million barrels in May, down nearly 26 percent from April's record 7.37 million barrels per day (bpd).
Strong imports in the previous months indicate "there was a significant commercial inventory build", said Seng Yick Tee, director of SIA Energy in Beijing. In May, China's refineries likely used crude from commercial storage, leading to lower arrivals, Tee added.
China's appetite for crude is, however, expected to pick up in the second half of the year as new commercial and strategic storage tanks are finished....MORE
China Oil Imports Seen Rising in Affirmation for OPEC Policy
China is forecast to accelerate its crude imports this month after slowing in May from a record.
The Asian nation will start buying more to take advantage of low prices and ample supply to fill emergency stockpiles, according to ICIS China, a Shanghai-based commodities researcher. Overseas purchases fell to 23.24 million metric tons in May, the lowest in 15 months, according to preliminary data released by the General Administration of Customs on Monday.
The prospect of China importing more crude will bolster OPEC’s strategy of pumping into an oversupplied global market, after the group decided Friday to maintain its production target. China has started filling a strategic petroleum reserve cavern in Qingdao city, one of four underground facilities expected to start this year, according to ICIS.
“We believe imports may pick up in June and throughout the second half of the year with more caverns coming online,” Amy Sun, an ICIS analyst, said by phone from Guangzhou.
China, the world’s second-largest oil consumer, may add 100,000 barrels a day in emergency supplies during the rest of this year and another 200,000 barrels a day in 2016, PIRA Energy Group, a consultant in New York, said last month....MORE
