ENERGY: China Oil Imports Fell in July to the Lowest Since Sept 2022

Concern for China oil demand growth continues to weigh on oil markets as imports of major commodities continued to lose momentum in July.

• China’s crude imports fell to the lowest since September 2022 with volumes in July down 3.1% y/y and 12% m/m to 42.34m tons, or 9.97mbpd, according to General Administration of Customs data. 
• Weak margins due to higher crude prices and weaker than expected fuel demand have curbed operations at state-run and independent refineries.
• Crude oil imports in Jan-Jul fell 2.9% y/y to 317.8m tons, or 10.89mbpd and the steepest fall since early 2023.
• Additional buying in July for China’s strategic reserves remained small according to Reuters sources.
• Refined products exports fell 7.3% m/m to 4.98m tons with year to date down 4.1% y/y to 35.08m tons. Oil product imports were 3.247m tons in July.
• Imports of both LNG and pipeline gas were up to 10.86m tons from 10.43m tons in June. Jan-Jul imports rose 12.9% y/y to 75.442m tons.