China increased imports of crude oil and coal to record levels amid decline in domestic production. The crude oil imports in August amounted to 32.85 million tons or about 7.77 million barrels per day, which is the highest value in last four months. The Chinese imports of coal amounted to 26.6 million tons, which is highest value since December 2014.
The production of crude oil to China this year decreased by 5.1% in the first seven months of the year, due to cuts in spending imposed by catastrophically low oil prices. A decline was also registered in coal mining, which production dropped by 10% in period January-July 2016, as the government seeks to reduce overcapacity and pollution.
According to the economists and analysts, the producers of crude oil in China will recover yields at current prices, so that imports will remain at fairly high level. Meanwhile, the sharp increase in the price of coal on the domestic market amid production cuts, directed users to seek for overseas supplies, which additionally pushed the growth of imports.
The industrial stocks of crude oil in China decreased by 5.7% mom in July.
At the same time, the net exports of fuels in the country dropped to 1.69 million tons, the lowest level since May. Total imports of natural gas decreased by 9.7% mom to 3.34 million tons, the lowest level in almost an year.
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