Crude imports to China over this month and next will slow considerably compared to import levels in May and June according to analysts from UK-based consultancy Facts Global Energy(FGE)and ICIS-China.The analysts cite an expected drop in imports by Chinese independently-owned refineries,or teapots,by up to 40% of May and June levels due to some teapots exhausting their crude import allowances,and a slowdown in oil demand in the country that is weighing on margins,according to the head of China client advisory with FGE Chen Jiyao.Li Li,an analyst with ICIS-China,added,"Some active buyers have used up the import oil allowance.That could shut the channel for them to further process imported oil for rest of the year."Michal Meidan,head of China research at the Oxford Institute for Energy Studies,also noted,"Although domestic demand for gasoline,diesel,jet fuel and fuel oil is inching higher,the overall consumption isn't keeping up with the stellar recovery that crude buying or refinery runs would imply.Even with demand returning,stockpiles are building in China suggesting that the nation's crude buying will slow and product exports will rise."
展开▼
