China Stockpiles Crude in Jan-Feb

China boosted inventories of crude in Jan-Feb – a move that gives them options to trim imports in the months ahead according to Reuters calculations.

• The estimate is made by deducting the amount of crude processed from the total of crude available from imports and domestic output.
• The total volume of crude available in the first two months was 15.02 million bpd, comprising 10.74 million bpd of imports and 4.27 million bpd of domestic production.
• Refineries processed 14.45 million bpd in the January-February period, leaving a surplus of 570,000 bpd available for commercial or strategic storages based on the Reuters calculations.
• The recent pattern of China's crude imports and stockpiling suggest that refiners have become more price-sensitive buyers and more willing to dip into or add to inventories in an effort to smooth out the impact of any move higher in oil prices.
• Vortexa figures show record volumes of Russian Sokol heading to China this month, a multi month increase in Iranian flows while a return of Venezuelan sanctions will likely push discounted barrels back towards China again.

Source: Reuters