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Buying by state-owned refiners pushed up China's crude oil imports in May 15.4% year on
year to 37.2 million mt, or 8.8 million b/d, but analysts said they expected crude inflows to
ease in June due to high stocks.
Imports in May rose 4.7% month on month, preliminary data released Thursday by the
General Administ ration of Customs showed.
The imports are the s econd highest level ever after 9.21 million b/d imported in Mar
ch this year.
"The increase was mainly from state-owned refiners as crude arrivals for independent refi
ners declined from April," said Hou Rui, an analyst with S&P Global Platts' China Oil
Analytics.
Independent refineries in China's eastern Shandong and Hebei provinces imported 8.43
million mt, or 1.99 million b/d, of crude oil in May, down 3% from April despite a 46% ye
ar-on-year increase, Platts da ta showed.
He added that most of the cargoes for the state-owned refiners were booked in March w
hen oil prices were low.
The monthly average Platts Dated Brent and Platts Dubai crude assessments were $51.
56/b and $51.20 /b respectively in March, a four-month low.
"Refinery outages remained high in May, so the incremental barrels are likely to flow int
o storage for use in June," Hou said.
Platts China Oil Analytics estimated that around 1.31 million b/d of refining capacity was
shut in May for maintenance -- 728,000 b/d for Sinopec refineries and 285,000 b/d for
PetroChina refineries. This was down from 1.5 million b/d in April, but still higher than la
st year.
Preliminary production data for May, including refinery runs, is scheduled to be released
around June 14 by the National Bureau of Statistics.
Hou said that imports in June were likely to decline due to ample stocks and increase ag
ain in July due to peak summer demand for oil products.
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