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Chinese Crude Stockpiles Build at Pace in May

OIL STORAGE

China added about 2.23 million bpd to commercial or strategic inventories in May according to Reuters data based on official data, rising from 2mn bpd in April.

  • Chinese stockpiles last built at a quicker pace in June 2020 at 2.81 million bpd as China bought up cheap global oversupply during the pandemic.
  • This year’s crude build is entirely different to 2020 and is a result of lockdown induced demand destruction across China, lessening demand for crude at refineries.
  • For the first five months of 2022, China added about 1.19 million bpd to crude storages, roughly matching the pace from 2020.

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