June 23rd, 2011 | Xinhua Oil price drop benefits Chinese suppliers
China’s imports of crude oil increased 20.8 percent in May year-on-year, according to data from the General Administration of Customs. Analysts say the growth might be attributed to the decline of international crude oil prices, the Shanghai-based National Business Daily reported Thursday.
Crude oil prices fell 15 percent to $93.57 per barrel on June 22 on the New York Mercantile Exchange.
Since the end of May, the crude oil price has been in a downward trend. This week, the price fell to near $90 per barrel. Many mercantile futures showed a similar drift. InterContinental Exchange Brent crude oil futures prices also dropped 4.3 percent.
With international oil prices dropping, Chinese oil companies are building up their inventories, industry analysts said.
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told reporters that China’s oil consumption maintained a growth rate of 7 percent during the past few months. Auto sales also rose in May. He expected oil consumption to increase by 8 percent to 9 percent in May.
China National Petroleum Corp increased its product oil inventory by 2.6 percent in May over the same period last year. China Petrochemical Corp in June sealed deals to rent 13 very large crude carriers.
By Yin Mingzhe