China’s June Crude Stocks to Soar to New High as Cheap Inflow Outpaces Throughput

China’s crude oil stockpiles will likely extend the uptrend to hit a new record high in June as refinery feedstock imports outpace the rise in throughput levels, while storage availability encourages refiners to actively procure barrels to take advantage of low crude prices. The slide in crude prices and recovery in economic activity late March had encouraged Chinese buyers to pile their shopping carts with all kinds of cheap crude, which were scheduled for delivery from late May through June.

As a result, trade flow and inventory tracker Kpler forecast on June 22 that China’s seaborne crude arrivals will hit 14.16 million b/d in June, a new record high following 10.21 million b/d in May even though some of the June arrivals are more likely to be discharged in July due to port congestion. The country last month imported 11.34 million b/d of crude – a historical high, General Administration of Customs data showed. China imports crude through both shipping and pipelines…

View entirety: S&P Global Platts