Chinese oil imports hit yearly high in August, but throughput still weak – BofA
2024.09.24 10:49
Investing.com — Chinese oil imports may have hit a yearly high in August, but throughput in the country remains weak, according to analysts at Bank of America.
In a note to clients on Monday, the analysts noted that customs data showed the world’s largest crude importer saw arrivals of 49.1 million metric tons in August, or roughly equivalent to 11.56 million barrels per day.
It was the highest monthly level since August 2023, and up from 9.97 million bpd in July — which was itself the weakest total in about two years.
The analysts at BofA argued that the uptick was likely due to preparations for the upcoming public holidays at the beginning of October.
However, they also flagged that throughput is still “subdued,” with a total of 59.1 million metric tons — or 13.9 million bpd — processed in August. The figure is flat versus July but down by 9% compared to the year-ago period.
Concerns over the impact of a sluggish economic performance in China have helped to place a limit on recent gains in crude prices sparked by ongoing tensions in the oil-rich Middle East and potential disruptions to US supplies.
On Tuesday, Beijing unveiled a raft of new stimulus measures aimed at boosting activity. Investors have long urged Chinese officials to roll out such measures, although it remained uncertain if the moves amounted to the massive “bazooka” in aid markets had been seeking, according to Reuters.
The People’s Bank of China (PBOC) said it is now set to cut reserve requirements for banks by 50 basis points to unlock more liquidity, while the government also said it would reduce mortgage rates for existing loans in an attempt to support the ailing property market.
The PBOC also slashed a short-term repo rate on Monday in a bid to further bolster liquidity.
(Reuters contributed to this report.)
