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China has beaten the US twice in terms of imported oil

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China has beaten the US twice in terms of imported oil

China has beaten the US twice in terms of imported oil
October 13
15:00 2016

The volumes of raw materials that were purchased by China in September have been unprecedentedly high. China has even beaten the USA, which is considered to be the largest importer in the world. China has become the leader thanks to the fact that it has bought inexpensive raw materials, which are intended to saturate strategic reserves.

For example, in September China’s crude oil imports increased by 18 per cent in annual comparison. According to the statistics of China’s General Administration of Customs, the import amounted to 33.06 million tons or 8.04 million barrels per day.

This figure is above the average volume of raw material, which is delivered to the United States. According to the US Energy Information Administration (EIA), this volume amounted to 7.98 million barrels per day at the end of September.

Accordingly, this year China has beaten the United States twice in terms of the imported oil volume. This has happened due to signed contracts in July, while the oversupply brought down oil prices below $ 42 per barrel. So far, oil prices have restored to $ 50 per barrel.

Traders claim that China is going to increase the strategic reserves, filling the new storages, which are designed to place approximately 19 million barrels. This corresponds to the three days of imports.

Harry Liu, Deputy Director on oil markets at IHS Energy said: “Basically, the growth ( of import)has been provided by the filling of storage facilities.” Previously, Liu said that the amount of imported oil in August and September had turned out to be more than predicted.

The growth of imports increased the demand from the side of independent private refineries in the last month of the summer.

Experts from the consulting firm BMI Research expected that China would continue to increase oil imports till the end of the year due to the reducing the production, starting the operation of new storage facilities and  the seasonal  demand growth in winter.

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