China July Oil Imports Fall From Record; Demand Slows (Update1)

11/08/2010 00:00 AST

China, the world’s biggest energy consumer, reduced net imports of crude-oil in July from a record reached in June as slower economic growth curbed fuel demand.

Net crude purchases fell to 18.8 million metric tons, or 4.5 million barrels a day, from an all-time high of 22.1 million tons the previous month, according to preliminary data released today by the Beijing-based General Administration of Customs. This compares with 19.2 million tons in July last year.

China’s economic expansion eased in the second quarter from the fastest pace in more than two years and industrial production cooled more than forecast in June. Diesel consumption may shrink in the second half because of government curbs on high energy-consuming industries, the National Energy Administration said on July 20.

“The figure declined from the June record as the slowing economy reduces oil needs,” Bai Xuesong, a senior engineer with state-backed China International Chemical Consulting Corp., said by telephone in Beijing. “We expect the nation’s oil import growth to slow in the second half from the first while purchases may rise slightly from a year earlier.”

Imports in the first seven months rose 24 percent to 137 million tons, according to today’s data. China bought 203.8 million tons of crude in 2009, according to customs data.

The country paid an average $73.79 for each barrel of crude in July, down from $77.20 a barrel in June, according to Bloomberg calculations based on customs data.

Imports of oil products including gasoline and diesel were 2.78 million tons and exports reached 2.54 million tons, according to customs, which doesn’t provide a breakdown by fuel type in its preliminary data.

The world’s biggest producer of coal exported 1.39 million tons of the fuel last month, customs said. It didn’t give import figures in today’s release.

China’s gross domestic product grew 10.3 percent in the second quarter compared with 11.9 percent expansion in the previous three months.

Bloomberg