China’s crude oil imports grew 1.6% m-o-m in May
According to the General Administration of Customs of China and Expana calculations, China’s monthly crude oil imports rose by 1.6% in May to an average of 11.11 million barrels per day (bpd), up from 10.93 million bpd in April. However, there was an 8.6% year-over-year decrease. Crude oil imports by China have remained relatively stable over the past two years, with higher volumes observed during the summer of 2023. Nonetheless, demand from China, the world’s largest crude oil importer, remains strong, with imports consistently above 10 million bpd since September 2022. This import trend aligns with the manufacturing situation in the country, which has shown growth for the past seven months.
Sources: General Administration of Customs, Expana calculations
The steady demand has contributed to bullish market sentiment, despite the increased crude oil production in the US. The weekly US ending stocks of crude oil (excluding Strategic Petroleum Reserve) have been rising since late 2023. The Energy Information Administration (EIA) also predicts record-high production in the US for 2024 and 2025. The ample supply from the US has been a significant bearish factor in the market recently. Even when the Organization of the Petroleum Exporting Countries (OPEC) extended output cuts into 2025, prices did not increase significantly, demonstrating the current influence of heightened US production.
Expana will continue to provide updates on import and production dynamics in the crude oil market as more information becomes available.
