According to the General Administration of Customs and Mintec calculations, China imported an average of 12.72m barrels per day (bpd) of petroleum oils in June, a 4.6% month-on-month (m-o-m) increase. The June figure indicated a second successive month of rising petroleum oil imports, up 45.4% year-on-year (y-o-y).
Within the crude oil market, participants had expected a surge in demand from China following the end of COVID-19 restrictions in December 2022. However, the increase occurred later than expected amid unremarkable economic data. In June, for instance, China's consumer price index (CPI) was flat, adding to market concerns about deflation. The purchasing managers' index (PMI) still registered growth at 50.5 (0.5 above the neutral 50 line) but fell from 50.9 m-o-m.
Nevertheless, higher m-o-m petroleum oil imports by the world's largest crude oil importer are supporting a bullish market sentiment. Players anticipate this trend will continue, barring any unexpectedly weak economic data from China. For reference, the Brent Crude Oil price [Mintec Code: BCRD] closed at $83.64/barrel on 25th July, up 15.8% m-o-m, while the WTI Crude Oil price [Mintec Code: SW5E] closed at $75.90/barrel on the same day, representing an 8.5% m-o-m increase.
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