Crude oil imports into China last year hit the highest ever, reaching 11.55 million barrels daily, or a total of 557.73 million tons, up 4.4% on 2024, Reuters reported today, citing official statistics. The December total was also a record high, the data showed, at an average daily of 13.18 million barrels for a total of 55.97 million tons. The data casts doubt on claims that Chinese oil demand is shrinking irreversibly, driven down by the electrification of transport. On the other hand, some of the oil ...

Group 1 - China stockpiled crude oil at a daily rate of approximately 690,000 barrels in October, an increase from 570,000 barrels daily in September [1] - Refinery throughput in October averaged 14.94 million barrels daily, representing a 6.4% year-on-year increase, but a decline from September's average of 15.26 million barrels per day [2] - Total daily supply in October, combining imports of 11.39 million barrels and local production of 4.24 million barrels, reached 15.63 million barrels, with the excess likely going into storage [3] Group 2 - China's stockpiling has contributed to the stability of oil prices, as the world's largest oil importer builds a supply cushion to mitigate potential disruptions [4] - Over the first ten months of the year, China maintained a stockpiling rate of 900,000 barrels daily, providing a significant buffer against disruptions such as U.S. sanctions on Russian oil companies [5]

Group 1 - Canadian oil exporters are diversifying their markets, with China emerging as a significant buyer due to trade disputes with the U.S. and the expanded Trans Mountain pipeline [1][2] - The Trans Mountain pipeline's new capacity of 890,000 barrels daily has led to an increase in shipments to China, averaging 207,000 barrels daily compared to 173,000 barrels to the U.S. [2] - October is projected to see record flows of Canadian oil to China, with 70% of oil cargoes from British Columbia heading to China, marking an all-time high for the first half of any month [3][4] Group 2 - China, the world's largest oil importer, is capitalizing on lower prices to stockpile crude oil, including Canadian oil, alongside discounted Russian and Iranian crude [5] - The average stockpiling rate for China this year is estimated at 990,000 barrels daily, which may decrease to around 500,000 barrels daily next year, depending on price trends [6] - China is expanding its oil storage capacity with 11 new sites expected to be built, adding approximately 169 million barrels of capacity, equivalent to two weeks of crude oil imports [7]

Core Insights - The amount of oil in transit has reached 1.2 billion barrels, the highest level since 2016, indicating an oversupply situation in the market [2][3] - China is significantly increasing its oil storage capacity, with plans to build 11 new storage sites, adding approximately 169 million barrels of capacity by 2026 [5] - Despite a global oversupply, China is stockpiling crude oil at a rate of nearly 1 million barrels per day, raising questions about its demand strategy [6] Group 1: Oil Supply and Demand Dynamics - The high volume of oil in transit suggests that demand is not keeping pace with supply, as much of the oil is being moved in search of buyers rather than fulfilling pre-existing contracts [3] - The current situation reflects a broader trend of increased production from key oil-producing countries, contributing to the oversupply [2] Group 2: China's Strategic Moves - China's state-owned energy companies are taking advantage of low oil prices to build up inventories, which has been a consistent strategy since early 2025 [4][5] - The new storage capacity being added is significant compared to previous years, indicating a strategic long-term approach to oil procurement [5] - Analysts note that China's stockpiling efforts are occurring despite a lack of domestic demand, suggesting a calculated move to prepare for future supply increases [6]

Group 1 - The discount for Iranian crude oil sold in China has increased to over $6 per barrel compared to Brent, rising from $5 at the beginning of September and $3 in March [1][2] - U.S. sanctions have impacted imports at major oil terminals in Shandong, affecting independent refiners that rely on Iranian crude [2][3] - Sanctions have led to reduced shipments to sanctioned ports, as the U.S. targets Chinese oil terminals and independent refiners [3] Group 2 - High stock levels at import hubs and insufficient government import quotas for independent refiners are contributing to the increased discounts for Iranian crude [4] - Onshore commercial crude stocks in Shandong reached a record-high of 293 million barrels as of August 22, which is 20 million barrels higher than early July [4] - China is accumulating crude inventories at a rate of approximately 1 million barrels per day and may continue to stockpile crude through 2026 if oil prices remain stable [5]