China’s crude oil imports fell in April to the lowest level since January, customs data showed on Tuesday, as the country’s post-COVID economic rebound slowed amid a weaker global macroeconomic backdrop.

Crude imports in April totalled 42.41 million tonnes, or 10.3 million barrels per day (bpd), according to data from the General Administration of Customs. That was down 1.45% from the 10.5 million bpd of crude imported in April last year.

Imports in March had surged 22.5% on last year to 12.3 million bpd – the highest level since June 2020 – as refinery throughput set a new monthly record of 14.9 million bpd.

China’s manufacturing rebound has been tempered by the effects of slowing demand from its international export partners amid ongoing recessionary fears, as well as its own domestic property slowdown.

Slower economic activity has put the brakes on refined fuel demand, particularly for diesel.

Arrivals at ports in Shandong province – a hub for independent refiners – also slowed in the latter half of April as customs officials tightened inspections after several Iranian cargoes were found to be mislabelled as diluted bitumen in an effort to bypass import quotas.

Refined fuel exports fell 1.96% on last year to 3.75 million tonnes for April, the lowest monthly level since last July.

Export margins for refined fuels have weakened in recent weeks.

Citi analysts said in a client note that current gasoline export margins were “not so attractive” to oil majors in China, with domestic cracks at $20 per barrel versus less than $10 per barrel in key export market Singapore.
Source: Reuters (Reporting by Andrew Hayley; Editing by Christian Schmollinger and Jamie Freed)