According to customs data released on Thursday, China’s imports of crude oil increased 45.3% year over year in June as refiners added to their inventories despite weak local demand.
Crude imports in June totaled 52.06 million metric tons, or 12.67 million barrels per day (bpd), the data from the General Administration of Customs showed.
This represents the second-highest monthly figure on record and a substantial increase on the 8.72 million bpd imported in June last year when the economy was battered by widespread COVID-19 lockdowns.
Crude imports also held their upward momentum on a month-on-month basis, up 4.58% from May’s 12.11 million bpd.
Total imports for the first half were 282.1 million tons, up 11.7% from the 252.52 million of the corresponding period last year.
Teapot refiners in the eastern province of Shandong have stepped up runs as authorities lifted curbs on the import of diluted bitumen, helping to ease inventory pressure at its ports.
More broadly, however, inventories continue to rise against an uncertain macroeconomic backdrop. Commodities consultancy Vortexa estimated onshore crude inventories at 980 million barrels at the end of June, just 20 million barrels below a record in August 2020.
While the demand for kerosene has increased significantly over the past year, boosted by a resumption in flights after the removal of curbs on travel, the manufacturing and property sectors’ difficulties have reduced demand for diesel despite government stimulus programs.