China’s Crude Imports Rise to Five-Month High on New Quota

(Bloomberg) -- China’s overseas crude inflows rose to a five-month high after private refiners were allocated new import quotas and as cargoes that were delayed by a typhoon were finally delivered.

The nation imported 44.53 million metric tons of crude in August, data released Tuesday by the General Administration of Customs showed. That’s equivalent to 10.53 million barrels a day, according to Bloomberg calculations, the most since March. Daily shipments were 9.75 million barrels in July.

Private refiners were able to increase purchases last month after the allocation of additional import quotas in mid-August, while overall inflows were boosted by the delivery of shipments delayed by Typhoon In-Fa in late July, according to Yuntao Liu, an analyst with London-based Energy Aspects Ltd.

Independent refiners were last month granted a third batch of import quotas for 2021 totaling 4.42 million tons, the smallest since China allowed non-state firms to directly import crude. Energy Aspects predicts that processors may get a further 11 million tons of allocations over the rest of the year.

China’s net fuel exports in August, meanwhile, fell to about 800,000 tons, the lowest level since June 2020. Shipments slipped as refiners waited for the allocation of new exports quota, which were eventually granted last month.

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With assistance from Bloomberg