China's oil imports rise to 5-month high

China's economy has been hit hard by the COVID-19 pandemic. In order to restore the hit economy, the Chinese government increased the quota for fuel exports. Thus, China's oil imports have risen.

China bought 43.14 million tons of oil last month, which is the biggest amount since May. Thus, it’s around 10.2 million barrels for each day. It increases September's numbers by 4%.

Moreover, it’s reported that at the end of September, the government allocated a quota for the export of fuel in the amount of 15 million tons.

Emma Lee, an analyst at Vortexa Ltd, believes the increase in imports is due to an additional government quota and lower prices for Asia for oil from Saudi Arabia.

However, the quota increase didn’t change the situation much. The level of net exports last month dropped almost twice compared to September, i.e. by 43%. On the other hand, state-owned refineries increased their activity during October and managed to reach the highest levels since April. This is reported by industry consultant OilChem. 

If we compare the October import figures for the day with those before the pandemic, it turns out that the levels are almost the same. The decrease in the level of net fuel exports may be due to the fact that the full process requires more time. First the crude oil has to be processed into final products, and only then can it be shipped abroad.