China’s crude imports hit 12.74mn b/d for June, the second highest figure ever behind the 12.99mn b/d seen in June 2020. With May 2023 having seen the next highest ever figure of 12.18mn b/d (MEES, 23 June), average 1H 2023 volumes of 11.43mn b/d were up 12% year-on-year, putting 2023 on track to smash the annual import record of 10.86mn b/d set in 2020.
If the IEA and Opec are correct in their forecasts that Chinese demand will remain firm in the second half of 2023 supporting global oil demand (MEES, 14 July & MEES, 16 June), then this record will indeed be smashed. However other observers have countered that the Chinese economy appears to be spluttering and that recent record imports have been in part down to opportunistic buying of cut-price Russian and Iranian crude rather than underlying strong demand. Latest figures from data intelligence firm Kpler peg Chinese crude oil stocks at 979mn barrels, up 51mn barrels from the start of 2023 and just 1% below the record 991mn barrel figure set in late-2020. (CONTINUED - 221 WORDS)