(Bloomberg) -- Chinese oil imports fell last month as refiners grappled with weak margins and shut units for planned maintenance.
Inflows sank to 45.5 million tons in September, according to customs data on Monday. That’s 7.4% lower than August and equal to 11.1 million barrels a day, according to Bloomberg calculations.
Feeble refining margins and seasonal maintenance are casting shadows on the outlook for the world’s largest oil importer just as OPEC+ prepares to ramp up output toward the year’s end. The price of Brent crude has risen about 7% this month amid an escalation of the conflict between Israel and Iran, but weakening demand from China could counter the bullishness.
Weekly refining margins for state plants at the end of September fell 44% from the previous year to 396 yuan ($56) a ton, while refineries including Sinopec Jinling and PetroChina Jilin shut units for planned maintenance during the month, Mysteel OilChem data showed.
“We expect Chinese crude imports to hold around 11 million barrels a day through the fourth quarter,” said Jianan Sun, a London-based analyst with Energy Aspects Ltd., citing the ramp up of a new mega-refinery and purchases for strategic reserves.
China’s oil demand is forecast to grow by no more than 300,000 barrels a day next year, according to a Bloomberg survey of industry participants last month. The nation that has propelled global demand growth for the past two decades is in the midst of a structural slowdown thanks to the uptake of electric cars and liquefied natural gas-fueled trucks.
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