Low Prices Spark Biggest Surge In Chinese Crude Imports Ever

Despite the collapse of several key industries (cough Steel & Construction cough), as we have discussed in detail related to the record number of VLCCs charging towards China, Chinese crude oil imports surged by almost 5 million barrels in December - the most on record. This 19.5% surge MoM (and 13.4% YoY) indicates significant efforts to fill the nation's strategic reserve but - absent this 'artificial' demand - spells problems for an already over-supplied global oil market (and its near record contango).

A record surge in crude imports in December...

 

And think what prices would have done if this 'demand' was not there...

 

Charts: Bloomberg