Thu. Jan 20th, 2022

Decline comes as Beijing pressures the refining sector to curb excess domestic fuel production.

China’s annual crude oil imports fell by 5.4 percent in 2021, falling for the first time since 2001 as Beijing suppressed the refining sector to curb excess domestic fuel production, while refineries took up massive inventory.

China has been the global oil demand driver for the past decade and accounted for 44 percent of global growth in oil imports since 2015, when Beijing began issuing import quotas to independent refineries. Benchmark Brent crude oil weakened slightly to $ 84.40 a barrel in the wake of the data release.

The drop in shipments as the world’s leading crude importer, to 512.98 million tons (equivalent to 10.26 million barrels per day) of 542.39 million tons in the 2020s, was in data from the Chinese General Administration on Friday Customs shown.

The Reuters news agency reported last year that imports to the world’s No. 2 refiner were slowing as Beijing evaded tax evasion and irregular quota trading among independent refineries and also reduced fuel export quotas to curb crude processing.

Oil revenues in December reached 46.14 million tonnes, nearly 20 percent more in the first monthly year-on-year growth since April, as independent refineries rushed to use 2021 quotas, customs data showed. The December inflow, equivalent to about 10.87 million barrels per day, was the highest daily amount since March.

The decline for 2021 compares with an average annual import growth rate of nearly 10 percent since 2015, according to China’s customs data.

In 2020, companies went on a massive stockpile ride amid the lowest oil prices in decades and a rapid recovery in fuel demand from the early impact of the COVID-19 pandemic. But by 2021, refineries and retailers have cut stocks amid higher prices and slower growth in fuel demand.

‘Cool the hype’

“Rising crude oil prices, a ‘backward’ market structure and the government’s overall strategy to cool the commodity market turmoil have worked together to drive down last year’s crude oil imports,” said MGE Geng, analyst at FGE. consultant said.

In a backward market, prices for fast delivery are higher than those in future months, which discourages companies from storing oil.

Liu Yuntao, an analyst at Energy Aspects, estimated that 70 to 90 million barrels of crude oil were withdrawn from storage last year, including a rare public auction of strategic petroleum reserves in September.

Monthly imports recorded year-on-year declines for eight consecutive months between April and November, as Beijing investigated the irregular trading of import quotas that led to reductions in permits for the independent refineries.

Meanwhile, natural gas imports, including pipe gas and liquefied natural gas (LNG), expanded by 19.9 percent in 2021 from the previous year to a record 121.36 million tonnes, customs data showed.

The growth, which accelerated from the previous year’s 5.3 percent increase, was supported by robust Chinese LNG purchases, especially in the first half of 2021, which saw Japan as the world’s largest buyer of the made supercooled fuel jump.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *