China crude oil imports rise sharply as independents snap up quotas

Crude oil imports into China in the first two months of the year rose almost 6% compared with a year earlier as independent refiners rushed to take advantage of fresh crude oil quotas for 2021.

According to Chinese customs data, 89.57 million mt was imported in January and February up 4.1% on the same period in 2020 and almost 10% in 2019.

The figures, which did not include the breakdown of individual months, equate to just over 11 million b/d using a 7.33 conversion factor.

The rise comes after China's government increased non-state crude oil import quotas last year by 20% on the year to satisfy demand from new mega-refineries.

Front month crude futures have risen 40% since mid-December - when much of the supply is likely to have been contracted.

With crude sitting near two-year highs and a refinery maintenance season coming back, analysts expect imports to cool during the second quarter.

Meanwhile, while crude oil imports soared, exports of refined products climbed more modestly, rising almost 2% during the period year-on-year to just short of 11 million mt.

The figures, which are typically released monthly, also showed natural gas imports soared 20% on the year to 20.8 million mt in January and February, reflecting plunging cold temperatures across eastern Asia during the period.