• 5 hours Elon Musk Goes Full Conspiracy Theorist, Blames Big Oil for Tesla's Negative Media Coverage
  • 14 hours Holiday weekend: Gas Prices Surge
  • 5 hours Several US News Sites Block EU Readers After Missing GDPR Deadline
  • 20 hours How Much Oil Could EVs Feasibly Displace by 2040?
  • 40 mins How Lousy Shale Oil Economics Will Pull Down The U.S. Economy
  • 24 hours Why Alberta Will Win The War Over Trans Mountain
  • 1 day Democrats Urge Trump to ‘Stand Up to OPEC’ Amid Rising Oil Prices
  • 1 day Expected:Trump Cancels Summit With North Korea Scheduled For Next Month
  • 1 day High Oil Prices Becoming Herd Mentality
  • 23 hours $5 per gallon in Manhattan
  • 4 hours Psychological manipulation of oil prices.
  • 23 hours Trump announces more sanctions on Venezuela after Maduro Win
  • 2 days Water-Based Battery Claims Exceptional Scalability
  • 21 hours HAPPY RIG COUNT DAY!!
  • 1 day VW Just Ordered $48 Billion in Electric Car Batteries. That's About What Tesla Is Worth Right Now
  • 1 day Russia/Germany Pipeline Really A Security Threat for US?
Is The OPEC Deal Finally Done?

Is The OPEC Deal Finally Done?

Oil prices fell on Friday…

China Books 65% Rise In Oil Stockpiles In April

Sinopec service station

China’s crude oil inventories rose by 65.3 percent between March and April, or by 37.84 million barrels, on the back of lower refinery throughput rates and higher imports, S&P Platts has calculated.

This month should see another increase in oil stocks as imports remain robust, the agency said. These hit a record high last month, at 9.64 million barrels daily, up by 14.7 percent on the year and by 4.1 percent on the month.

Refinery processing rates, on the other hand, inched down 0.5 percent to 12.11 million bpd, according to official data. This was more than a million barrels daily less than China’s total crude oil supply including imports and local production, which averaged 13.38 million barrels daily in April.

In March, Chinese refineries processed 12.13 million barrels daily, which was yet another record broken. The decrease in April comes amid refinery maintenance season and throughput rates this month are also expected to be lower than the March ones.

China’s oil demand growth has so far this year exceeded expectations, and Goldman Sachs, for example, says that growth could be even “higher than currently estimated”. According to Goldman, global oil demand growth in the first quarter of 2018 is likely to have seen the strongest yearly growth since the fourth quarter of 2010.

These strong demand forecasts for the world’s number-one crude oil importer have combined with Middle Eastern tensions and the pending U.S. sanctions on Iran to push Brent closer to the US$80 mark, although headwinds from the Lower 48 in the form of a breakneck rate in oil production growth have somewhat curbed the price rally.

But while China has been importing more and more crude, the source pattern of this crude has been changing. Earlier this month, Sinopec said it will cut crude oil shipments from Saudi Arabia by 40 percent in June, after it did the same with May shipments, after Riyadh surprisingly raised the price of its light crude for Asian clients.

At the same time, Beijing has assured Iran it will continue buying crude from it despite U.S. sanctions.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News