China’s crude oil imports in June dropped 11% from a high base a year earlier, and first-half imports fell 2.3% in a rare year-to-date decline, according to data from the General Administration of Customs.
June arrivals into the world’s largest crude oil buyer were 46.45 million metric tons, or about 11.3 million barrels per day (bpd). This was up slightly from 11.06 million bpd in May but down from an all-time high of 12.67 million bpd in June 2023.
The decline in imports was attributed to higher crude oil prices and weaker-than-expected domestic consumption for both gasoline and diesel, which have weighed on refining margins. The International Energy Agency also noted that China’s share in global oil demand growth is declining to 40% this year from 70% in 2023 as its second-quarter consumption contracted due to economic challenges.
Imports for the first-half of 2024 totaled about 275 million tons, or 11.05 million bpd, down 2.3% year-on-year. This represents one of the few annual declines and the steepest fall for year-to-date volumes since early 2023.
Gasoline demand between January and May fell nearly 2% year-on-year, and diesel demand dropped 14%, according to Chinese commodities consultancy Sublime China Information. This has led large refineries to complete planned maintenance in late May and June, while smaller independent plants in the Shandong refining hub continued to curb buying due to thin profit margins.
However, crude oil imports may receive additional support in the coming months from a government mandate to boost state reserves by nearly 60 million barrels by next March. China’s natural gas imports for June also held steady from a year earlier.