Another Red Flag For Oil? China’s Crude Imports Slump To 7-Month Low

Tyler Durden's picture

Authored by Tsvetana Paraskova via OilPrice.com,

Chinese crude oil imports in July dropped to their lowest level in seven months, although they rose 12 percent on an annual basis, according to calculations made by Reuters on the basis of China’s customs data.

Last month China imported some 34.66 million tons of crude oil, or around 8.16 million bpd, which—according to Reuters calculations based on China’s General Administration of Customs data—was the lowest level since January.

Crude oil imports in the first seven months of this year increased by 13.6 percent at 247 million tons.

In the first half of the year, Chinese crude oil imports averaged 8.55 million bpd, or 212 million tons in total – a 13.8-percent annual increase.

The total trade data for July had analysts worried that China’s economy may have started to show signs of slowdown. Both exports and imports increased less than expected, making analysts wonder if global demand growth has started to slow down, or if China’s July trade figures should be attributed solely to one-off or seasonal factors.

In total imports, China’s imports increased by 11 percent last month, missing forecasts for a 16.6-percent rise, and slowing down from June’s 17.2-percent jump, to the slowest growth since December last year.

Last month, a senior manager at Sinopec said that lower domestic production and continued low oil prices will lead to China’s demand for crude oil imports rising by around 400,000 bpd in 2017. Chinese crude oil imports are expected to exceed 400 million tons this year, and to further rise next year, Zhang Haichao, vice president of Sinopec Group, told Reuters. The estimate provided by Zhang means that Chinese demand for foreign crude would rise by 400,000 bpd, and for the first time ever, rising imports could make China the world’s top crude oil importer on an annual basis, according to Reuters. 

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wisehiney's picture

Highly deflationary.

TLT

GUS100CORRINA's picture

Another Red Flag For Oil? China’s Crude Imports Slump To 7-Month Low

My response:  Why the SLUMP? My guess is that CHINA has nowhere to store the OIL. So much for PEAK OIL theory. The world is AWASH in HYDROCARBON based fuels. Note that I did NOT say FOSSIL FUELS.

Natural GAS was up smartly today. UGAZ chart looking like it wants to make a run north.

Oracle of Kypseli's picture

Oil will yo-yo 43 to 51 artificially until Aramco IPO goes live. Then 35. "Epic Fail"

So far, playing that yo-yo has been very good to the family.

NoWayJose's picture

Saudis said last month they were trimming oil exports to Asia. Duh?

RagaMuffin's picture

Got to wonder how much they stockpiled in anticipation of Korea being a "problem"...........

Cthonic's picture

Crude oil imports in the first seven months of this year increased by 13.6 percent.  If our net imports increased half of that, people would be partying like it was 1999.

NoWayJose's picture

China sucked a lot more oil than last year, and forecasts growing demand in the future - yet the headline is "Red Flag". Almost like the author got paid to trash oil.

And as an oil analyst - did they miss the Saudi announcement that they were trimming exports to Asia? That might explain the drop in raw numbers.

SantaClaws's picture

"according to calculations made by Reuters on the basis of China’s customs data."

And how much oil was imported that is not reflected in customs data?

Oracle of Kypseli's picture

....and how much Iraqui and Syrian oil is sold secretly by Edrogan and son which is unaccounted?

NoWayJose's picture

I'm sure the Chinese gubmint is handing over lots of economic data - to Reuters??? NOT!!!