China’s crude oil imports continued to decline in October, marking the sixth consecutive month of year-on-year decrease. According to customs data, imports fell by 9% to 44.7 million tons, equivalent to 10.5 million barrels per day.
Weakening Demand Drives Import Decline
Commerzbank’s commodity analyst, Carsten Fritsch, attributes the weakening import trend to sluggish economic growth and the rapid adoption of electric vehicles. This combination has led to a decline in overall oil demand within China.
Export Slump Exacerbates the Trend
In addition to falling imports, China’s oil product exports also experienced a significant drop of 23% year-on-year in October. This further underscores the weakening demand for oil and its derivatives within the country.
Also read : Crude Oil Prices Slump 1% As Market Weighs Trump’s Tariffs And Sluggish Chinese Demand
Outlook for 2024
Given the current trends, it is highly likely that China’s crude oil imports will decline for the third time in the past four years. Unlike previous declines, which were primarily attributed to the COVID-19 pandemic, the current downturn is driven by fundamental economic factors.
As China continues to transition towards a more sustainable and electric-powered future, the demand for traditional fossil fuels, including oil, is expected to gradually diminish. This shift could have significant implications for global oil markets and energy prices.
