Analysts project increased demand for oil from China this year and expect imports to reach 12 million barrels per day next year, according to Reuters. Recently, China has stepped up oil purchases from Russia, the US and Angola despite the coronavirus infections and fresh lockdowns lowering demand.
- Lower global demand for oil has pushed prices lower, allowing China to take advantage.
- China has raised its quotas, expanded storage capacity, and is ramping up commercial oil stockpiling.
- Oil exporters are lining up shipments to retain their worldwide market share even as consumption is expected to fall by almost 9% this year.
- The International Energy Agency (IEA) suggested last week that China is on track to be the only major country to boost its oil demand year-on-year
- Global oil demand is expected to be 91.3 million bpd in 2020, down from 100.1 million bpd in 2019-IEA
Fig. China’s Oil Imports has risen from April-September 2020
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