July 10, 2025 06:52 AM GMT Chinese crude imports softened further in May, as peak refinery maintenance levels and rapidly building inventories reduced crude demand. Iranian crude imports dropped by 40% MoM, as a mix of sanctions risk and high inventory levels among ports and refiners willing to take sanctioned crude depressed appetites for Iranian oil. Chinese buyers also opted to take less May delivery crude under their Middle East term deals back in March, on expectations that Saudi would cut prices for M ...

Summary of China Oil Data Digest - April 2025 Industry Overview - The report focuses on the oil industry in China, summarizing supply, apparent demand, and trade data for April 2025. Key Points Apparent Demand and Supply - Chinese apparent oil demand decreased by 410 thousand barrels per day (kb/d) year-on-year (YoY) in April, primarily due to refinery maintenance impacting product supply and leading to a rapid build-up of crude stocks [2][5][11] - Apparent diesel demand fell by 110 kb/d month-on-month (MoM) and was down 9% YoY, aligning with weakening manufacturing PMIs [11][18] - Apparent gasoline demand dropped 13% YoY to 3.16 million barrels per day (mb/d), with a 150 kb/d decrease from March [21][27] - Jet fuel demand weakened sharply, falling by 145 kb/d MoM and 19% YoY, although total flight numbers increased slightly [30][36] Crude Imports and Exports - Chinese crude imports softened in April but still reached a seasonal record of 11.7 mb/d, with a 370 kb/d MoM decrease but an increase of 830 kb/d YoY [3][7][58] - Imports of Iranian oil fell by 530 kb/d MoM due to increased caution among refiners following US sanctions [3][60] - Strong imports from Russia and Brazil were noted, as Chinese refiners opted for cheaper grades amid high premiums for Middle Eastern crude [3][61] Refinery Operations - Refinery throughput dropped sharply by 740 kb/d MoM due to intensified seasonal maintenance, particularly at Sinopec [4][65] - Independent refiners increased utilization rates to a 14-week high of 47.5% to capitalize on stronger domestic margins [4][132] - Overall, refinery runs were down 180 kb/d YoY, marking the second consecutive month of decline [126][130] Product Exports and Imports - Refined product net exports weakened in April, driven by tighter supply and weak export margins, leading refiners to retain more supply domestically [5][73] - LPG imports increased by 140 kb/d MoM, reaching an all-time high for April, as buyers stocked up amid rising US-China trade tensions [40][78] - Naphtha imports are expected to strengthen in May and June due to increased attractiveness as a feedstock following high tariffs on LPG [49][50] Economic and Trade Context - The manufacturing PMI index fell to 49.0 in April, indicating contraction and reflecting the impact of US-China trade tensions [8][11] - The overall outlook for Chinese trade remains gloomy, with export growth expected to decelerate to 0% for 2025 [13][12] - The Chinese government released a second batch of clean product export quotas for 2025, totaling 12.8 million tons, slightly down from the previous year [98][101] Inventory Changes - China's crude stocks built rapidly, adding approximately 36 million barrels in April, while observable product inventories drew by 7.1 million barrels [158][165] - Diesel stocks drew by 4.0 million barrels, and gasoline stocks drew by 3.1 million barrels, driven by healthy demand for public holiday travel [159][163] Future Outlook - The YoY reduction in diesel demand is expected to widen further as the negative effects of tariffs on domestic manufacturing continue [16] - Despite a high level of refinery outages in April, which supported margins, a weakening outlook for demand is anticipated in the second half of 2025 [115][125] Additional Insights - The report highlights the significant impact of geopolitical factors, such as US sanctions and trade tensions, on China's oil demand and supply dynamics [12][60][136] - The shift in crude sourcing from Middle Eastern suppliers to Russian and Brazilian grades indicates a strategic response to pricing pressures and sanctions [61][64] This summary encapsulates the critical data and insights from the April 2025 oil data digest, providing a comprehensive overview of the current state and future outlook of the Chinese oil industry.