China’s oil imports and crude processing surged last month as refineries returned from seasonal maintenance, while net exports of fuel products jumped after the allocation of a new quota.
Inbound shipments of oil climbed to 9.83 million barrels a day, the highest since May, according to Bloomberg calculations based on government data released Monday. Crude processing increased by 9% from a month earlier to 13.88 million barrels a day, the most since February.
China’s crude purchases are poised to climb over the final quarter of the year after Beijing issued a new quota for oil imports and fuel exports. Refiners may boost processing by 500,000 barrels a day during the final three months just to utilize the fresh allocations, according to Energy Aspects. Refining could rise further as new plants start, including Shenghong Group.
The volume of refining capacity under maintenance shrunk to 28.3 million tons as of Sept. 29, down from 48.7 million tons on Aug. 25, according to industry consultant OilChem. Meanwhile, processing rates for independent refiners in Shandong province rose to 69.1% of capacity in the week ended Oct. 21, the highest level since July, data from OilChem show.
China’s net fuel exports surged 17% from a month earlier to 3.37 million tons, the highest level since June 2021. Beijing is seeking to revive economic growth by allowing refiners to ship more fuel overseas.
