Chinese crude imports hit 2016 high

China

BEIJING, September 8, 2016 – Preliminary import data released by China’s General Administration of Customs late on Thursday revealed the country’s oil imports reached a 2016 high in August.

Imports averaged 7.8 million bopd last month, narrowly missing the all-time-high mark set in December 2015. That month, Chinese crude imports averaged 7.85 million bopd. August 2016 imports were up 7% year-on-year and rose 6% from the preceding month, when the country imported 7.35 million bopd. Demand is largely driven by Chinese teapot refineries using the window of low oil prices to stock up.

In other news, China National Petroleum Corporation (CNPC) might list its oilfield services unit through Daqing Huake Company, in which it has a 55% stake through two subsidiaries. According to sources familiar with the matter cited by Bloomberg on Thursday, CNPC might also use Daqing Huake as a vehicle for the backdoor listing of its equipment manufacturing unit. This route would speed up a listing, as waiting times for traditional listings in China can exceed four years from the moment of application.