Chinese demand will help the global oil market return to balance

Chinese demand will help the global oil market return to balance

Since the beginning of this year, global crude oil demand has been sluggish due to the impact of the epidemic. However, China, which was the first to recover from the epidemic, has contributed an important force to the recovery of global crude oil demand. It is expected that China will remain the backbone of the global crude oil market in the second half of the year.

From the perspective of crude oil import data, the data monitoring of Jinlian Chuang shows that in July, China’s crude oil imports were 51.29 million tons, up 25% year-on-year; from January to July, China’s cumulative crude oil imports were 320 million tons, up 12% year-on-year. The largest increase in the same period in the past three years.

From the perspective of crude oil production, in July, China’s crude oil output was 16.46 million tons, an increase of 0.6% year-on-year; from January to July, China’s cumulative crude oil production was 110 million tons, an increase of 1.4% year-on-year. Since the beginning of this year, China’s crude oil production has rebounded, but due to the intensified increase in imports, the degree of dependence on foreign crude oil imports rose by one percentage point to 74% from 73% in the previous year.

From the perspective of crude oil processing, in July, China’s crude oil processing volume was 59.56 million tons, a year-on-year increase of 12.4%; from January to July, China’s cumulative crude oil processing volume was 110 million tons, a year-on-year increase of 2.3%. As of the end of August, the operating rate of the main refinery has recovered to 83.3%, and the operating rate of the ground refinery has recovered to 73.4%.

From the perspective of apparent crude oil consumption, in July, China’s apparent crude oil consumption was 67.75 million tons, an increase of 18.6% year-on-year; from January to July, China’s apparent crude oil consumption was 430 million tons, an increase of 9.4% year-on-year. The highest level in the same period in history. The Jin Lian Chuang believes that after the epidemic, China’s crude oil has entered a stage of retaliatory rebound. Driven by the policy of fully recovering the economy in the second half of the year, China’s apparent crude oil consumption is expected to continue to rise.

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