Page 10 - AsianOil Week 43 2022

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China crude imports slip in September,

product exports see boost

PIPELINES & DATA released this week by China’s General China’s government agency reported that
TRANSPORT Administration of Customs (GAC) showed that crude imports during September amounted to
the country’s imports of crude oil were down 40.24mn tonnes, making the daily average about
The company has said by 2% compared to the previous month. While 9.79mn barrels.
that its overall fuel Saudi Arabia continues to hold the slot of main Covid restrictions and other economic
production has not supplier, discounted oil imports from Russia rose factors prompted OPEC to lower its demand
been affected. by more than 21% despite the drop in overall growth forecast for China in its latest monthly
crude intake. report. The group currently sees China’s oil
China’s independent refineries, which demand growth averaging 2.64mn bpd in 2022
account for about a fifth of China refining capac- and 2.34mn bpd in 2023.
ity, have cut back on imports, and throughput Regarding the first three quarters of this year,
declined as demand for products slipped amid China imported 370.4mn tonnes, about a daily
restrictions imposed by the government to average for the period of 9.9mn barrels, which is
combat the spread of coronavirus (COVID- down from the same period last year and which
19). Demand in the transportation and some is the first annual decline for the first three-quar-
industrial sectors has been affected by the social ter period in eight years.
curbs, which are expected to continue to have an Economic conditions in China have caused
impact on the economy. independent refineries to limit throughput,
However, the country’s state refiners took but government refineries are reported to be
advantage of growing global pre-winter demand making small increases. During the first three
and exported more in September than they months, China exported 35.45mn tonnes of
had in more than a year. GAC data showed that products, down by nearly 28% because of a
exports of diesel, gasoline, aviation fuel and policy adopted in late 2021 to limit exports,
marine fuel oil increased by 36% from the same but that has recently been adjusted with new
time last year to 5.64mn tonnes. larger fuel export quotas to take advantage of
The decline in crude imports reflects the global demand.
economic situation that China is facing as it China’s imports of Russian crude oil via pipe-
pursues a zero-Covid policy, which is showing line and tanker totalled 7.46mn tonnes, around
to be costly for the government budget. Eco- 1.8mn bpd, during September compared to a
nomic forecasts project that China is entering a year earlier, according to GAC. This volume was
period of slow economic growth, which this year down from an average of 1.96mn bpd in August
is predicted to be just 2%. Over the last decade, and from a record high of 2mn bpd in May. Chi-
China has managed economic growth at around nese purchases of Russia crude are being viewed
6% annually, it is reported. China is the world’s as a way for Beijing to support Russia’s war in
second largest economy, after the US, and with Ukraine.
crude imports of 11.8mn barrels per day in 2021, Imports from Saudi Arabia declined by 5.4%
making it the largest importer of crude oil, ahead from September 2021, averaging 1.83mn bpd,
of the US, which imports some 9.1mn bpd. down from 1.99mn bpd in August. ™

P10 www. NEWSBASE .com Week 43 31•October•2022