China’s crude oil imports rose above 7m barrels per day for the first time in December, reaching record levels as plunging international prices allowed the world’s largest importer to fill strategic and commercial reserves.
International crude prices are near six-year lows, revisiting levels last seen in the wake of the global financial crisis. While price controls over transport fuels limit the boost to the Chinese economy, the drop has presented an unusual opportunity for China to increase reserves of crude oil at relatively little cost.
China imported 7.15m bpd in December, bringing its full-year crude imports to a record 308m tonnes, up nearly 10 per cent on the year. Some of that additional demand reflects economic growth and new refineries coming on line but most is probably going into tank farms, say market watchers.