When government refineries returned from recession, Chinese crude oil was imported

Crude oil tanker discovered in Shandong Province, April 21, 2019. REUTERS / Jason Lee / File Photo

BEIJING, Aug. 7 (Reuters) – Despite the fact that independent filters are recovering in Beijing for marketing and tax inspections, government-sponsored filters increased production after a six-month hike in July.

China imported 41.24 million barrels of crude oil last month, 9.71 million barrels per day (BDP), according to the Customs Administration on Saturday.

That compares with 40.14 million tons in June and 51.29 million tons in July 2020.

In the first seven months of the year, China, the world’s largest crude oil importer, imported 301.83 million tons or 10.39 million BPD, down 5.6 percent from the same period last year.

Chinese analysts at Longzong Consulting said: “When state-owned refineries complete repairs, the number of refineries will gradually resume.”

Operations rates at the Shandong Center, however, showed a sharp decline last month, with the average rate falling to 63% at the end of July this year.

Analysts expect China’s oil imports to fall to 2021 in 2021, with the impact of Beijing’s imports and high imports.

In June 2021, China cut 35% of its crude oil import quotas for crude oil in the second round of subsidy, with many small refineries receiving no quotas. Read more

Meanwhile, the central government has been investigating illegal foreign trade quotas since April in part to reduce oil profits, which are hurting the government’s profits.

Shandong Province, where most of the neutral filters are located, stepped up its efforts this week to block oil refineries.

Customs data showed China exported 4.64 million tons of crude oil on Saturday, down from 44.5 percent a year ago but down 28.0 percent from June.

Natural gas imports, including pipelines and natural gas (LNG), were 9.34 million tons last month, up 27.1 percent year-on-year.

Report by Mu Hu Hu and Gabriel Crossley; Correction by Jacqueline Wong

Our Standards – Thomson Reuters Trust Principles.


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