Oil prices are falling with decreasing demand in China

According to data from China, oil prices are falling. Information indicates that demand from the world's largest oil importer remained weak in September. The reasons for consumption reduction were tough policy on COVID-19 and limitation of fuel exports.

China's imports of crude oil in September amounted to 9.79 million barrels per day. The indicator is higher than in August, but it is 2% lower than a year ago. This is the result of reduced capacity in conditions of low margins and weak demand from independent refineries.

ANZ analysts noted a slowdown in the recent recovery of oil imports in September. They also added that independent refiners were unable to use increased quotas due to the continuing COVID lockdown, which has impacted demand.

Analysts say that falling refinery margins and product export restrictions worsened the situation.