Skyrocketing rates and recuperating imports of diluted bitumen caused a 2nd successive month of lower fuel oil imports into China compared to the previous month, according to main Chinese information.
China’s fuel oil imports visited 8% from July to 1.4 million metric loads in August, per the information from the Chinese General Administration of Customs launched on Wednesday and estimated by Reuters Still, fuel oil imports in August more than doubled compared to the very same month of 2022.
The July imports of fuel oil into China plunged by 44% compared to June, according to the custom-mades information summed up by Reuters. In June, Chinese imports of fuel oil struck a decade-high of 2.7 million loads, up by 5% on the month and an enormous 226% rise compared to June 2022.
China’s imports of fuel oil were high at the end of the very first quarter and in the 2nd quarters as refiners scooped up reduced high-sulfur fuel oil from Russia and imported more fuel oil as Chinese authorities were punishing imports of freights identified as watered down bitumen.
Given that China relieved at the end of June the checks and launched oil imported from Iran and Venezuela that was waiting at ports for weeks in the middle of increased freight analysis, Chinese imports of diluted bitumen have actually recuperated, pressing need for fuel oil lower.
In addition, Asian rates of high-sulfur fuel oil soared in August in a tightening up higher-sulfur oil market, even more dissuading fuel oil imports, Reuters notes.
On the other hand, China imported in August the third-highest regular monthly petroleum volumes ever as unrefined arrivals rose by 20.9% compared to July and by 30.9% versus August in 2015, according to Chinese custom-mades information.
Chinese crude imports struck 12.43 million barrels each day (bpd) last month, the third-highest ever day-to-day rate of arrivals in a month, per Reuters quotes on information from the General Administration of Customs.
Unrefined imports skyrocketed as refiners continued to construct stockpiles and raise refinery runs in order to catch greater margins exporting fuels.
By Tsvetana Paraskova for Oilprice.com
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