China imported significantly more crude oil in November for the first time in a while. As reported by the Chinese customs authority, imports amounted to 48.5 million tons or 11.8 million barrels per day, Commerzbank’s commodity analyst Carsten Fritsch notes.
“This was a good 14% up on the previous year and the highest volume in a month since August 2023. For the first time since April, imports were higher than in the same month of the previous year. As tanker data had already indicated this, the surprise was limited. However, it is doubtful that this is a sign of stronger domestic demand.”
“Rather, refineries are likely to have used the low price level in November to build up stocks. In addition, new crude oil processing capacities were put into operation. However, crude oil imports are likely to be lower again in the coming months due to weak domestic demand.”
“Despite the increase in November, crude oil imports after eleven months are still 1.9% below the level in the same period last year, meaning that an annual decline is likely to be recorded for the third time in the last four years. This is further confirmation that China is no longer the main driver of global oil demand.”