China's crude oil imports fell again in October - Commerzbank

China imported less crude oil in October as well. According to customs data, crude oil imports fell by 9% year-on-year to 44.7 million tons, or 10.5 million barrels per day, Commerzbank's commodity analyst Carsten Fritsch notes.

Weakening of oil imports is due to the weaker demand for oil

"This means that imports were down year-on-year for the sixth consecutive month. Imports were also lower than in the previous month, which was due to the closure of a processing plant at a state-owned refinery and lower capacity utilisation at smaller refineries. Since the beginning of the year, crude oil imports have totalled 457 million tons. This corresponds to an average of 10.8 million barrels per day and represents a decline of 3.4% compared to the same period last year."

"To make up this shortfall, crude oil imports would have to increase to an unrealistic 12.8 million barrels per day in the remaining two months. China's crude oil imports are thus expected to decline year-on-year for the third time in the last four years. Unlike the two previous declines, which were caused by the effects of the coronavirus pandemic, this year's decline is not due to special factors."

"Rather, the weakening of oil imports in China is due to the weaker demand for oil as a result of the sluggish economic development and the rapid advance of e-mobility. In October, exports of oil products were 23% lower than in the previous year and, after 10 months, 7.2% below the level in the same period of the previous year. Here, too, a decline is therefore likely for the year as a whole."