China’s crude oil imports 5.45% in April Y-Y

China’s crude oil imports rose 5.45 per cent in April compared to the same month a previous year, driven by refiners stocking up for a busy Labour Day holiday travel season, Reuters reported, citing official data released on Thursday.

Crude imports reached 44.72 million metric tons in April, translating to roughly 10.88 million barrels per day (bpd), up from the 10.4 million bpd imported in April 2023.

The increase aligns with China’s strong travel rebound during the five-day Labour Day holiday that began on May 1st.

State media outlet Xinhua reported over 1.3 billion passenger trips taken, reflecting a 2.1 per cent year-on-year rise, Reuters mentioned.

This surge in travel means a 2.1 per cent increase in highway traffic and an even steeper 8.1 per cent jump in air travel. Additionally, China’s domestic airline seat capacity also saw a 1.3 per cent increase compared to last year, indicating continued growth in air travel.

However, the import growth slowed down compared to March’s figures, which reached 11.55 million bpd.

Analysts attribute this slowdown to rising crude oil prices and weakening domestic demand for diesel fuel, according to Lin Ye of Rystad Energy.

Despite the short-term dip, analysts remain optimistic about China’s future crude oil demand. Lin Ye expects larger export quotas and new refinery start-ups later this year to provide support.

China’s natural gas imports saw a significant increase in April, rising 14.7 per cent year-on-year to 10.30 million tons.

This growth coincides with a decrease in LNG prices for Asia, which were down 11.3 per cent compared to the same period last year and a significant 43 per cent lower than October 2023’s peak.

Notably, China saw a substantial increase in refined oil products like diesel, gasoline, aviation fuel, and marine fuel. These exports reached 4.55 million tons in April, reflecting a 21.46 per cent year-on-year jump.