3 Minutes to Read by 3 Minutes to Read by 3 Minutes to Read by 3 SINGAPORE/BEIJING (Reuters) – China’s crude oil imports declined 3% in the first half of the year compared to the same period the previous year, the first drop in the first half of a year since 2013, as a lack of import quotas, refinery maintenance, and rising global prices stifled demand. PHOTO FROM THE FILE: On June 11, 2019, oil tankers are visible at a Sinopec Yaogang oil depot port in Nantong, Jiangsu Province, China. REUTERS/Stringer Last month, imports totaled 40.14 million tonnes, or 9.77 million barrels per day, according to data issued by the General Administration of Customs on Tuesday (bpd). That’s down from 9.65 million bpd in May and a high of 12.9 million bpd in June 2020, when refiners picked up cheap oil to service a recovering Chinese market. Imports into the world’s largest crude oil importer totaled 260.66 million tonnes, or nearly 10.51 million barrels per day, in the first half of 2021, down 3% from a year earlier. In the first quarter, bumper purchases led by independent refineries boosted imports, pushing foreign shipments 9.5 percent higher than the same period in 2020. However, imports plummeted about 13% in the second quarter compared to the first three months, as stockpiles rose and refining margins were pressured by gradually rising global oil prices and a flood of blending fuels like light cycle oil that slipped into the diesel pool. China’s crude oil imports are depicted graphically. – Independent refiners also faced tougher import limitations as the government increased surveillance of crude oil imports by state and private refiners in an effort to reduce emissions and manage a surplus in processing capacity. “In June, the crackdowns on teapot crude quota trading and non-compliant crude supply by national oil companies to teapots substantially hurt crude imports,” said Seng Yick Tee, senior director at consultancy SIA Energy. China reduced the second batch of quotas issued to non-state importers by more than a third compared to a year earlier as a result of a crackdown on quota trading. Due to the limit cutbacks, Sang Xiao, analyst at China-based Sublime Consultancy, predicted that imports would remain modest in July and August. Refined fuel exports increased nearly two-thirds year over year to 6.44 million tonnes, according to Tuesday’s figures. Last month, total natural gas imports, including LNG and piped gas, remained elevated at 10.21 million tonnes, compared to 10.32 million tonnes in May. (One tonne of crude equals 7.3 barrels) Muyu Xu and Chen Aizhu contributed reporting, and Jacqueline Wong and Tom Hogue edited the piece./n
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