China’s crude oil imports rose in May, customs data showed on Wednesday, as refiners built inventories and stepped up operations after maintenance in April.

Crude imports in May totalled 51.44 million tonnes, or 12.11 million barrels per day (bpd), according to data from the General Administration of Customs. That was up 12.24% from the 10.79 million bpd of crude imported in May last year.

Shipments to the world’s largest oil importer increased significantly month-on-month, up 17.4% on April’s 10.3 million bpd.

Despite a mixed macroeconomic picture, a build-up in inventories has helped to sustain crude import demand.

“Crude oil inventories in China have surged to 46.1 days of forward cover, up from 44.9 in December 2022,” JPMorgan analysts said in a note last week.

While refinery maintenance at key plants did not significantly reduce crude throughput, refinery runs have increased in recent weeks. Sinopec’s 0386.HKZhenhai and Jinling refineries reopened after being closed in April, while state-owned PetroChina’s 0857.HK 100,000 bpd Changqing refinery also reopened at the end of May.

A slower-than-expected post-COVID rebound in China’s manufacturing sector, however, continues to weigh on fuel demand, amid weak orders from key export partners and ongoing distress in the country’s property sector.
Source: Reuters (Reporting by Andrew Hayley; Editing by Himani Sarkar and Tom Hogue)