China Added 200,000 Bpd to Crude Reserves in July Despite Hormuz Crisis
China Added 200,000 Bpd to Crude Reserves in July Despite Hormuz Crisis What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… China is estimated to have added about 200,000 barrels per day (bpd) of crude oil to its huge inventories in July as imports rebounded from a decade-low in June and refinery runs remained depressed.
The world’s top crude oil importer, unlike other major oil consumers, started drawing down on stockpiles only in May, the third month of the Middle East crisis, as ithad amassedan estimated 1.4 billion barrels of crude oil in commercial and strategic stocks at the start of the Iran war.
The trend of drawdowns in May and June appears to have reversed in July, according to calculations by Reuters columnistClyde Russellbased on officially available Chinese data.
Unlike the United States, China does not report inventories.
Analysts are looking at overall supply (domestic production plus imports) and refinery processing rates to estimate how much crude is going into reserves and how much is being processed into fuels.
Using this calculation, Reuters’ Russell has estimated that China had 210,000 bpd of crude available to go to storage in July, considering total crude availability of 12.72 million bpd (8.41 million bpd of imports and 4.3 million bpd of domestic production), and refinery throughput of 12.51 million bpd.
The latest estimates show that China’s massive crude oil stockpile has mostly remained intact at about 1.2 billion barrels, five months after the worst disruption to global oil supply began with the closure of the Strait of Hormuz.
Chinaslashedits overall crude oil imports amid the Middle East conflict as its refiners cut run rates and authorities restricted fuel exports to protect domestic supply.
Now China has eased some of thefuel export restrictions, which led to arebound in crude oil importsin July, following a ten-year low seen in June.
The higher crude oil imports in July likely allowed stockpiling again, in a surprise to the market and possibly indicating continued weakness in domestic demand and refining volumes.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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