In Freight News 20/04/2015
China exported 750,000 tonnes of crude oil in March, its largest volume since 2006, in a possible sign the world’s second largest crude importer is running out of storage capacity.
The figure could also reflect transfers of crude oil stored in China by Chinese trade partners, such as Iran.
The outbound shipments, which amount to 177,000 barrels per day (bpd), left March net imports at 6.1 million bpd, the lowest net level since last October, up just 11 percent on the year, according to Reuters calculations.
Gross imports in March were the lowest since last November, and up 14 percent on the year, customs data show.
With global benchmark oil prices plumbing depths not seen in six years, China has been adding to its strategic petroleum reserves (SPR), accumulating an implied excess of 90 million barrels, excluding commercial storage, in 2014, Reuters calculations show.
But some analysts say that China could be running out of storage space and that imports could pull back from recent highs. China still accumulated an implied excess of 29 million barrels in the first two months of 2015.
China is in the second phase of filling its strategic reserves, and revealed last November that the first phase was holding roughly 91 million barrels. The government rarely releases details about its reserves. At the same time, exports recorded by Chinese customs authorities could also reflect the movements of crude stored in China to destinations elsewhere.
Sources told Reuters last year that state-owned National Iranian Oil Company (NIOC) has been leasing storage in the northeastern Chinese port of Dalian, and has made at least two deliveries of crude from there to India and one to South Korea.
China recorded exports to Iran totalling 321,000 tonnes in 2014, and none to India.
A country-wise breakdown of March exports will be released Apr. 21.
