Oil Imports Into China Decline Again as Top Buyer Cuts Back

Oil imports into China sank again last month, highlighting soft consumption in the largest buyer just as traders weighed the implications of Donald Trump capturing the White House and potential supply rises from OPEC+.

Imports contracted to 44.7 million tons in October, according to customs data on Thursday. That’s about 2% lower than September, and almost 9% below the same period last year, according to Bloomberg calculations. Year-to-date shipments are now running more than 3% behind last year’s pace.

Crude prices are lower year-to-date despite tensions in the Middle East, with US output running at a record rate, and OPEC+ planning to ease supply curbs. China’s consumption has been a weak spot for the market, and last month’s decline in inflows came as local refiners cut throughput amid weaker margins. Trump’s victory has prompted speculation it’s negative for prices.

State-owned refineries in the Asian nation cut their run rates at the end of October to the lowest since December, according to data from Mysteel OilChem. More than half of 60 state-owned plants surveyed by the industry consultant were seen to have curtailed operations in the period.

The roots of the slowdown in oil imports lie in the wider economy’s sluggish performance, with policymakers grappling with a drawn-out property crisis despite several round of stimulus. In addition, more of the nation’s trucking fleet has been switching away from diesel to liquefied natural gas.