Publication date: July 6, 2024
Chinese Oil Importer Signals Decreased Demand, Impacts Crude Prices

Chinese Oil Importer Signals Decreased Demand, Impacts Crude Prices

Supertankers bound for China dwindle to a nearly two-year low, signaling potential softness in demand and impacting crude prices.

Oil

The number of supertankers headed for China has dropped significantly, marking the lowest tally in almost two years. Only 86 tankers are indicating China as their next destination in the coming three months, with concerns arising over a potential softening in demand and its repercussions on crude prices. Factors such as a slower-than-expected return of refineries from maintenance, reduced purchases from key suppliers in July and a possible decline in monthly import volumes are raising concerns. The recent data shows that 35 tankers are en route to the US, with 14 vessels sailing for Angola, signaling the country's increased export efforts. With 546 vessels outlining future destinations, fluctuations in demand and supply dynamics remain a focal point amidst potential market shifts.