• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 4 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 11 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 16 hours "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 23 hours The Federal Reserve and Money...Aspects which are not widely known
  • 6 days Changing Gazprom ADRs to Russian shares
It’s Time For An Oil And Gas Boom In Africa

It’s Time For An Oil And Gas Boom In Africa

While many countries, including the…

Oil Prices Fall As Demand Concerns Persist

Oil Prices Fall As Demand Concerns Persist

Crude prices fell on Friday…

China’s Crude Demand Continues To Surge As Imports Near 8M bpd

Less than a year after the Chinese government allowed local refineries to use imported crude, the demand for overseas oil has risen by 7.6 percent, exceeding 30 million tons in April for the third consecutive month this year.

In July 2015, the central government in Beijing allowed a growing number local refineries, also known as “teapot refineries”, to start importing crude, which led to gradual increase in demand.

Thus, according to data of the Chinese General Administration of Customs, China last month imported 32.58 million metric tons of crude oil which equals to 7.96 million barrels a day, up 3.2 percent from the previous month.

Related: Influential Saudi Oil Minister Dismissed

These figures show a 7.6 percent increase compared to crude shipments received in the same period of 2015.

Earlier this year, 16 such teapot refineries came together in what is now the China Petroleum Purchase Federation of Independent Refineries. In the Shandong province, where most of these refineries are based, crude imports soared 303.1 percent by value in Q1 2016, compared to the same period last year.

In parallel with demand from local refineries, China’s appetite for imported crude is also explained by the authorities’ efforts to fill up the strategic petroleum reserves.

The rhythm of crude imports is going to increase amid the important role small refineries are starting to play, analysts highlight.

Related: Saudi Arabia To List Aramco Shares In New York, London, Hong Kong

“Their imports are still small compared to Sinopec or PetroChina, but their influence shouldn’t be neglected,” Bai Jun, a deputy director with an energy research institution affiliated with the National Development and Reform Commission, said.

For instance, Shandong Dongming Petrochemical, the biggest teapot refinery has an annual processing capacity of 15 million tons, of which 7.5 million tons are imported, equivalent to about 2 percent of China’s annual crude imports in 2015.

A total of 83 supertankers are now heading for the Chinese ports, with the operational capacity at the main hub Qingdao being overstretched.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News