China's crude oil imports in June fell to the lowest level in nearly a decade, while refined oil exports saw a significant rebound in July.

Foreign Media: China's crude oil imports plummeted to 7.12 million barrels per day in June, marking the lowest level in nearly a decade, a year-on-year drop of 41.3%. Refinery processing volumes also fell to 12.47 million barrels per day—the lowest since March 2020—but inventories declined by only about 940,000 barrels per day, indicating China's reliance on its vast reserves (estimated at over 1.2 billion barrels) to buffer the impact of the Iran crisis.

Previously, due to soaring oil prices, China had imposed informal restrictions on refined product exports. In June, exports of light and middle distillates were just 393,000 barrels per day. However, signs of relaxation emerged in July, with exports surging to 787,000 barrels per day, driven by a sharp rise in Asian refining margins—gasoline crack spreads soared from $18.94 in late February to $54.93 by July 17.

If oil prices remain high, China’s imports may decline again after October, but it could increase refinery operating rates and boost refined product exports to capture substantial profits, emerging as a new variable in the oil market.

Original Source: toutiao.com/article/1871253817683980/

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