Asia’s crude oil imports are expected to reach 24.98 million bpd in October, the highest in seven months and compared to 23.45 million bpd in October 2020 and 24.53 million bpd in October 2019. It also represents an increase of 1.81 million bpd from September’s total arrivals. Analysts said India, Japan, and South Korea led the revival in Asia’s crude demand.
About 4.19 million bpd of oil is expected to arrive in India this month, up from 3.88 million bpd in September. The South Asian country has reopened its economy after pandemic lockdowns. Japan’s oil imports in October are forecast at 3.01 million bpd, the highest this year as domestic refiners build up inventories ahead of the winter demand peak. Crude arrivals in South Korea are estimated at 2.99 million bpd as refiners tried to ensure sufficient winter supplies.
On the other hand, China’s imports are projected to stay weak at 9.79 million bpd in October, down from September’s 10.03 million bpd and August’s 10.53 million bpd. China’s declining imports are mostly attributed to the ongoing power crunch in the country, which has forced some industries, including the refining sector, to implement production cuts. China’s daily crude throughput fell to 13.64 million bpd last month, the lowest since May 2020. Many independent refiners were also unable to import crude as they ran out of import quotas. Beijing has issued another batch of quotas which is expected to support imports next month.
