China's crude oil imports experienced a significant increase in April, rising 5.45% compared to the same period last year, according to data released by the General Administration of Customs on Thursday. The surge in imports can be attributed to refiners' preparations for the fully recovered Labour Day holiday travel season.
During the five-day holiday that began on May 1, China recorded over 1.3 billion passenger trips, marking a 2.1% increase from the corresponding period in 2023. Highway traffic saw a 2.1% rise, while air travel exhibited a more pronounced surge of 8.1%. Furthermore, consultancy OAG reported a 1.3% increase in domestic airline seat capacity in April 2024 compared to the same month in 2023.
Despite the robust travel sector, China's manufacturing sector showed signs of a muted recovery in April. The official purchasing managers' index dropped to 50.4 from 50.8 in March, remaining above the 50 mark that signifies growth, but suggesting a slower expansion in activity compared to the previous month.
Imports slowed by 5.8% from March's level of 11.55 million bpd. "China's crude buying slowed down on strengthened crude oil prices and weakened domestic diesel demand," said Lin Ye, an analyst at Rystad Energy in Beijing.
However, Lin Ye added, "China's crude demand is expected to be supported by larger export quota this year and new refinery start-up later this year."
Natural gas imports for April rose 14.7% from a year earlier to 10.30 million tons, customs data showed.
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