China’s crude oil imports rebounded in September amid easing port congestion, marking an end of ending two successive month-on-month declines. According to China’s general administration of customs (GAC) data, the country imported 11.85 million bpd of crude last month, up by 5.6% from August and 17.6% from September last year. For the first nine months of 2020, crude imports averaged 11.12 million bpd, representing a 12.2% increase from the same period a year earlier.
China’s crude imports reached a record high of 12.94 million bpd in June, but a surge in crude arrivals caused congestions at the country’s main ports. The logistical bottlenecks began to ease in September as a backlog of oil stored in floating storage started to clear gradually. Chinese customs authorities also streamlined crude import processes that could reduce clearance times by 2-3 days.
Four new storage facilities have entered service in north China since the third quarter to help absorb imports. These facilities include Hongrun’s 13.8 million barrel tank farm in Weifang, Dekun Energy’s 12.6 million barrel storage facility in Rizhao, Dongjiakou port’s 10.1 million barrel capacity in Qingdao, and Sinopec’s 5 million barrel of storage in Luoyang.
