China is pausing its crude buying spree after months of stocking up on oil cargoes. This could result in a greater number of European and West African cargoes heading into local markets.
Data from China's customs data showed crude imports to China in May jumped 19.2 percent on the year to an all-time high of 11.34 million b/d. With the seaborne arrivals predicted at 11.77 million b/d and 13.03 million b/d, respectively, the imports are set to rise further in June and July.
The country's crude inventories hit a record 847.50 million barrels in the week that began June 22. The previous record high was 807.47 million barrels in the week of March 23-29. In the Shandong province alone around 40 crude carriers have been waiting for more than a week for discharging.
In Northwest European crude, including North Sea grades, a significant slowdown is being seen with a total of 28.51 million barrels landed in Asia for the month of June, down from 58.31 in May.
