- Tankers bound for the Asian country has reduced due to buying weakness.
- The Chinese bound crude volume plunged to its lowest level since early May.
- The rise in global COVID-19 infections, and the world bracing for a second wave of the virus caused faltering demand.
- The number of very large and ultra-large crude carriers bound for China is slumping.
- China’s demand for oil seems to be slowing, with a slip in physical prices.
The reduced number of tankers bound for the Asian country highlights the buying weakness and also hints about a drop in imports by China, reports Bloomberg.
Plunge in crude influx
The Chinese bound crude volume plunged to its lowest level since early May. This hints at the faltering demand in contrast to the intense buying that took place a few months ago.
According to ship-tracking data compiled by Bloomberg show that the number of supertankers signaling the Asian nation during the next three months fell by 12 this week to 111.
What is the reason?
The decline is due to faltering demand caused by the rise in global COVID-19 infections, and the world bracing for a second wave of the virus.
Tanking Supertankers
The number of very large and ultra-large crude carriers bound for China is slumping.
Chinese oil demand
In the month of May, Chinese oil demand soared to around pre-coronavirus levels. More tankers raced to the world’s largest crude importing nation to discharge their cargoes.
Lockdown effect
Now people are again forced to remain in their homes due to the resurgence in virus outbreaks and significant flooding along the Yangtze river.
Drop in imports?
China’s demand for oil seems to be slowing, with physical prices slipping. The reduced number of tankers bound for the Asian country underscores the buying weakness and suggests a drop in imports by China is coming.
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Source: Bloomberg
