Asia’s crude oil imports rebounded in August from a year-low level in July, likely fueled by low oil prices in May and early June when the cargoes arriving in August must have been nominated.
Asia, the world’s biggest oil-importing region and a key gauge of global oil demand growth, saw crude oil imports average 27.18 million barrels per day (bpd) in August, higher than in July and in August last year, per data from LSEG Oil Research cited by Reuters columnist Clyde Russell.
The July import levels of 24.91 million bpd were the weakest in a year for Asia. Imports rebounded in August as prices in May-early June – when the cargoes were likely arranged – were at the lower end of this year’s range in the low $60s per barrel of Brent Crude oil.
The biggest Asian importers, China and India, took advantage of the weak oil prices to boost purchases for August-arriving cargoes. China, the world’s top crude oil importer, and India, the third largest in the world, can sway the trend in Asian imports with their purchases.
It is not certain if rising demand in the summer or weak oil prices in May were the primary drivers.
In August, China and India imported more crude from both Saudi Arabia and Russia, per LSEG Oil Research data.
The two major importers remain opportunistic buyers, nominating more crude when prices are low.
Earlier this year, Asia’s crude oil imports surged in June to the highest level in two and a half years, but the rise isn’t necessarily attributable to strengthening oil demand after a soft start to the year.
Cargoes arriving in Asia in June were likely contracted six to eight weeks prior—in April, when oil prices crashed amid the OPEC+ production hikes plan and the U.S. tariff blitz.
Going forward, Asia’s imports in September could be lower as oil prices briefly surged in the second half of June to above $80 per barrel during the Israel-Iran war.
By Michael Kern for Oilprice.com
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