Chinese Oil Imports Jumped 25% in July

China’s imports of crude jumped 25% in July compared to a year ago, driven by the arrival of massive purchases that took place when prices collapsed in April and the customs clearance of some shipments delayed at ports in June.

Data issued by the General Administration of Customs showed that China, the world’s largest importer of crude oil, bought 51.29 million tons of oil last month, equivalent to 12.08 million barrels per day, according to Reuters.

This is higher than July 2019 imports of 9.66 million bpd, but below the previous record level of 12.94 million bpd recorded in June.

Crude oil bought by Chinese bargain hunters arrived in April, when oil prices plummeted to their lowest levels in decades, while flows were also boosted by customs clearance of imports due to congested Chinese ports.

Data were not included in the countries of origin. But Emma Lee, an analyst at Refinitiv, estimated that about five million tons of US crude oil arrived in China in July – an unprecedented high monthly level – and that about a million tons could be delayed until August due to port congestion.

Analysts and port officials say the congestion could continue this month.

China exported only 3.21 million tons of refined oil products last month, the lowest level since January 2017.

That is less than June’s exports of 3.88 million tons, down 41.5% from July last year.

The export slowdown comes as refiners try to cut back on ballooning fuel stocks after producing record quantities in June.

Customs data also showed that imports of natural gas, whether piped or liquefied natural gas, amounted to 7.35 million tons in July, down 6.9% from a year ago.