Daily Energy Report
Daily Energy Report
China’s oil game, US rig count, US sanctions on Iran, drilling and mining in Alaska, India's oi’ imports from Russia and more
Chart of the Day: China’s Oil Game!
Figure (1)
Summary
Figure (1) above shows the change in exports and imports between March 2024 and March 2023. Oil exports last month increased by 285.65 kbd over the exports of March 2024 while imports declined by 573.44 kbd.
In this news story: Oil Supertankers Headed for China Jump to the Highest in a Year
The surge mentioned in the story is only normal as the demand starts picking up, but also because exports are increasing
EOA’s Main Takeaway
What the data is telling us is that China domestic oil demand is still struggling and that China is exporting its “oil inventories.” This is the story that we have been telling for a while: China is withdrawing oil from its inventories to tame oil prices while making money. Oil in inventories was bout when prices were in the $50s and $60s.
Figure (2) below shows the decline in China’s oil inventories, including that of last month. Our readers have seen this chart when we posted a few days ago.
As for the surge in the number of VLCC going to China in the next 3 months, it is also an indication that the withdrawal from inventories will stop and a build will start. We should be careful concluding strong economic growth from the increase in oil exports since some of the oil will go to inventories. China still gets discount on Russian and Iranian oil.
Figure (2)
Story of the Day
Baker Hughes: US Oil Directed Rig Count Increased by 5