China‘s Crude Oil Imports Dip to Lowest Since September 2022
China’s daily crude oil imports in July slumped to their lowest level since September 2022, as weaker fuel demand curbed operations at state-owned and independent refineries. Imports fell by approximately 12% from the previous month and were 3% lower year-on-year, according to Reuters data.
The world’s largest crude oil importer brought in 42.34 million tonnes in July, or roughly 9.97 million barrels per day.
High crude oil prices and lower-than-expected domestic consumption of gasoline and diesel are negatively impacting refining profits. Independent refineries operated at just 56.11% of capacity in July, the lowest level in three years.
China imported 317.8 million tonnes of crude oil in the first seven months of the year, down 2.4% year-on-year. This marks the first annual decline in imports since early 2023.
Meanwhile, China’s foreign exchange reserves unexpectedly surged in July, as the dollar weakened against other major currencies. The country’s foreign exchange reserves climbed by $34 billion to $3.256 trillion, exceeding market expectations.
The yuan appreciated by 0.56% against the dollar in July, while the dollar depreciated by 1.7% against a basket of other major currencies.