Page 11 - AsianOil Week 03 2022

AsianOil EAST ASIA AsianOil

China crude imports fall as national

reserves to be released

PERFORMANCE FIGURES released by the General Administra- driving force behind 44% of global oil import
tion of Customs (GAC) service late last week growth over the past six years had fallen from a
show that Chinese crude oil imports over the 12 2020 high of 542.39mn tonnes.
months ending in December fell by 5.4% – the It is not coincidental that import figures
first dip in imports since 2001. dropping for the first time in 20 years came at a
Much of the drop-off in imports is being time Beijing also agreed a co-ordinated strategic
attributed to the national government forcing national reserve release with the US.
domestic refineries to limit fuel production Efforts across a number of the world’s leading
for the local market coupled with refiners also oil importers, China included, to release national
moving to reduce previously held large-scale reserves in a bid to bring down oil prices were
inventory. first revealed by the Biden administration in late
As early as July 2015, the warning signs were November 2021.
in place that this day would come, with Beijing at China, Japan and South Korea along with the
the time issuing quotas on foreign crude imports US and UK have all indicated releases will be
to its smaller independent refineries even with forthcoming, but while the US Strategic Petro-
import growth rates each year between 2015 leum Reserve (SPR) announced that a total China, Japan
and 2021 then topping out at almost 10% year of 50mn barrels would be released, China was
on year. less enthusiastic about disclosing the volumes it and South Korea
Chinese authorities clamping down on tax would be releasing.
evasion by the country’s 19 ‘teapot’ refineries late The early February timing, likely February along with the
in 2021, as well as reductions in permitted export 1, is also raising questions in Asia, as to China’s
quotas, also saw the nation rank only second on intent with the release targeting the start of the US and UK have
the global refineries list. January 31 to February 6 Chinese New Year hol- all indicated
As a result, figures for 2021, also showed iday period.
refinery exports across China dropping by 2.4% In doing so it is thought Chinese authorities releases will be
to 60.31mn tonnes over the 12 months, the first are hoping to see minimal effect in the first few
such drop since 2015. days following the release, with millions of Chi- forthcoming.
Adding to the concerns of those dependent nese people typically having already travelled to
on crude imports, figures released by China be with family for the period.
Customs also highlighted Beijing as increasingly Businesses and industry across the country
turning to natural gas shipments to help offset will be closed down, and highways quiet.
the rising costs of Middle Eastern crude in recent Japan and South Korea, meanwhile, will be
months; annual import figures in all gas catego- releasing a combined total of just over 3.7mn
ries were up 19.9% over the course of the year in barrels at some point in the first quarter of
excess of 121mn tonnes. the year, although they will now likely wait to
As such, with news of Chinese crude imports see what effect, if any, the February joint Chi-
down at 512.98mn tonnes – 10.26mn barrels nese-US release has on Middle Eastern output
per day (bpd) – over the last calendar year, the and global prices.™

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