China’s Oil Thirst Draws an Armada of Tankers

[Tom Kirkman + 8,860]

China comes to rescue of international oil & gas.  Weird.

China’s Oil Thirst Draws an Armada of Tankers

(Bloomberg) -- As Chinese oil demand rises to near pre-coronavirus levels, more and more tankers are hauling crude to the Asian nation from almost everywhere.

The number of supertankers heading to China has jumped to 127, the highest level since at least the start of 2017, and probably ever, vessel-tracking data compiled by Bloomberg show. That amounts to about 250 million barrels of oil, assuming each ship is fully laden.

As the world slowly recovers from the pandemic, oil demand in China is outpacing that in the U.S. and Europe. It’s the natural destination for the glut of crude that is now just starting to dwindle as record output cuts by the Organization of Petroleum Exporting Countries and its allies take hold.

 

... The number of supertankers heading to China, the world’s second-largest oil consumer after the U.S., now surpasses the previous high reached just two weeks ago. Ships are now hauling crude to the Asian country from Brazil, northwest Europe, West Africa and other countries in the Middle East. Many of the shipments will arrive between now and the end of August.  ...

 

 

 

 

[Douglas Buckland + 6,308]

China needs the oil to power her industries NOW. In a few months, when the global backlash occur for being complicit in killing hundreds of thousands of people in other countries, they won’t need so much. Why make stuff nobody is going to buy?

[Marcin2 + 724]

https://www.reuters.com/article/us-china-economy-trade-crude/chinas-daily-crude-oil-imports-rebound-in-april-as-fuel-demand-picks-up-idUSKBN22J0B6

"Crude oil arrivals were 40.43 million tonnes last month according to a full data table released by the General Administration of Customs on Thursday, equivalent to 9.84 million barrels per day (bpd).

That was more than the 9.68 million bpd imported in March, but well below 10.64 million bpd in April 2019.

Imports during the first four months of the year reached 167.61 million tonnes, or 10.11 million bpd, 1.7% higher than the year-earlier period. A customs statement published earlier on Thursday initially provided a rounded figure that was higher for January-April imports.

Oil refineries have been raising crude oil processing rates, shored up by the resumption of business activity and removal of travel restrictions within the country."

 

https://www.iea.org/reports/oil-market-report-april-2020

"Early data show China’s implied stock build in 1Q20 at 2.1 mb/d, and US stocks increased by 0.5 mb/d. OECD data show that industry stocks in February fell by 35.4 mb to 2 878 mb as a draw for products more than offset a build in crude. Total OECD oil stocks stood 42.4 mb below the five-year average and, due to the weak outlook, now provide 79.2 days of forward demand coverage. In March, floating storage of crude oil increased by 22.9 mb (0.7 mb/d) to 103.1 mb.  "

How they calculate this ? By calculation of -refinery throughput, +domestic output and +imports ?

[0R0 + 6,251]

11 hours ago, Tom Kirkman said:

China comes to rescue of international oil & gas.  Weird.

China’s Oil Thirst Draws an Armada of Tankers

(Bloomberg) -- As Chinese oil demand rises to near pre-coronavirus levels, more and more tankers are hauling crude to the Asian nation from almost everywhere.

The number of supertankers heading to China has jumped to 127, the highest level since at least the start of 2017, and probably ever, vessel-tracking data compiled by Bloomberg show. That amounts to about 250 million barrels of oil, assuming each ship is fully laden.

As the world slowly recovers from the pandemic, oil demand in China is outpacing that in the U.S. and Europe. It’s the natural destination for the glut of crude that is now just starting to dwindle as record output cuts by the Organization of Petroleum Exporting Countries and its allies take hold.

 

... The number of supertankers heading to China, the world’s second-largest oil consumer after the U.S., now surpasses the previous high reached just two weeks ago. Ships are now hauling crude to the Asian country from Brazil, northwest Europe, West Africa and other countries in the Middle East. Many of the shipments will arrive between now and the end of August.  ...

Does it mean they have managed to build plentiful new storage? The restrained economic activity is obviously not causing this bid for large quantities of oil. This looks like a year's worth of oil destined for strategic storage in the prospect of blockade as China prepares for war, or for a major shortage with high prices later this year and next, but their own experience of the CV19 outbreak would teach them not to expect it. Leaving only expectation of a blockade as the only likely explanation.

 

[Marcin2 + 724]

It is difficult to make assertion relating to trends on the basis of such information as number of tankers heading to China at the moment.
This journalist is just an artist, he painted wonderful picture of armada of tankers, this makes natural inroads into imagination of each person. Huge tankers and so many of them.

But as I informed in my Previous comment above it is not an indicator of any trend.

Jan-Apr 2020 Oil imports by China 10.11 m bbl/d so 5 tankers unloaded each day.

So 150 tankers unloaded each month and in total 600 tankers already this year.

Till the end if the year it would be another 1200 tankers, and the total for 2020 would be 1800 tankers unloaded at Chinese ports.

[ralfy + 55]

Only around 30 pct of human beings earn more than $10 a day. The remaining 70 pct want to earn more and are eager to do so, with significant numbers of them young.

That's why demand destruction for the U.S., Japan, and EU has been negated by rising resource and energy demand globally for many years.

 

[NickW + 2,714]

On 5/30/2020 at 3:53 PM, Douglas Buckland said:

China needs the oil to power her industries NOW. In a few months, when the global backlash occur for being complicit in killing hundreds of thousands of people in other countries, they won’t need so much. Why make stuff nobody is going to buy?

While you and I make our best efforts to reduce our 'Made in China' purchases I don't know that this is going to roll out in the general population. 

Some encouraging signs though. I had to buy some cheapo plates* and food bowls the other day for everyday use and was pleased to find (in the absence of Made in the UK) that they were made in Romania. 

* Under normal circumstances I go to the local charity shops for such items and get good quality ones for el cheapo prices. 

[Douglas Buckland + 6,308]

It’s a start. If Chinese goods are not allowed in, then options will be found. When I was back in the States, I often went to the thrift shops for winter or work gear. Even if it was originally ‘made in China’, buying second hand still avoids new Chinese imports.

Supporting other countries economies is better than supporting the CCP.

[NickW + 2,714]

11 minutes ago, Douglas Buckland said:

It’s a start. If Chinese goods are not allowed in, then options will be found. When I was back in the States, I often went to the thrift shops for winter or work gear. Even if it was originally ‘made in China’, buying second hand still avoids new Chinese imports.

Supporting other countries economies is better than supporting the CCP.

We have several charity shops in our high street which works well because its an affluent area so plenty of good quality donations. 

Most of the toys we have bought for our son have come from the charity shops. Quick wash and you have a new toy to occupy his mind for 15 minutes😀. Better still no new money for the CCP.

I often buy day to day workshirts which are 1/3-1/4 the price and barely worn. In fact better still they are 'run in' so more comfortable . My winter coat came from the CS. 

Also try and buy tools second hand from Gumtree / Farcebook markets or Ebay. 

[Jan van Eck + 7,558]

On 6/1/2020 at 4:23 AM, NickW said:

Some encouraging signs though. I had to buy some cheapo plates* and food bowls the other day for everyday use and was pleased to find (in the absence of Made in the UK) that they were made in Romania.

Romania is a great source for low-cost goods.  The Dacia car brand is built there, in the former Communist car factory, now taken over by Renault of France.  You can treat yourself to a new Dacia station-wagon for as little as 7,000 pounds Sterling.  What makes it lower-cost is that it does not have a lot of the electronics and micro-processors that drive up Western car pricing.  Also, no electric windows in the back, no automatic transmission  (4-speed manual only), and so forth.    

I am going to look into importing the Dacia for re-sale in Vermont.  Just might be a good market for those.

Romania is also the go-to place for fabrication of commercial ship hulls.  Lots of heavy-metal hull construction in Romanian shipyards, for the fancy stuff the hull is towed to Holland for finishing.  Damen Shipyards  (Holland) has a huge yard in Romania.  Lots of others. 

[Dan Warnick + 6,100]

2 hours ago, Jan van Eck said:

Romania is a great source for low-cost goods.  The Dacia car brand is built there, in the former Communist car factory, now taken over by Renault of France.  You can treat yourself to a new Dacia station-wagon for as little as 7,000 pounds Sterling.  What makes it lower-cost is that it does not have a lot of the electronics and micro-processors that drive up Western car pricing.  Also, no electric windows in the back, no automatic transmission  (4-speed manual only), and so forth.    

I am going to look into importing the Dacia for re-sale in Vermont.  Just might be a good market for those.

Romania is also the go-to place for fabrication of commercial ship hulls.  Lots of heavy-metal hull construction in Romanian shipyards, for the fancy stuff the hull is towed to Holland for finishing.  Damen Shipyards  (Holland) has a huge yard in Romania.  Lots of others. 

Don't forget the high percentage of beautiful Romanian women (subjective, of course, but still)!

[ronwagn + 6,290]

On 6/1/2020 at 5:40 AM, Douglas Buckland said:

It’s a start. If Chinese goods are not allowed in, then options will be found. When I was back in the States, I often went to the thrift shops for winter or work gear. Even if it was originally ‘made in China’, buying second hand still avoids new Chinese imports.

Supporting other countries economies is better than supporting the CCP.

My wife gets me way more than all the clothes I want from thrift stores. They practically give them away. I normally don't buy any name brand other than Wrangler jeans. She gets me things I wouldn't normally pay for. 

I do buy a lot of cheap stuff from Amazon, but need to research where it came from. I rarely shop for anything. I just like to save time, gasoline, and energy shopping. 

[ronwagn + 6,290]

On 6/4/2020 at 5:30 AM, Dan Warnick said:

Don't forget the high percentage of beautiful Romanian women (subjective, of course, but still)!

New car prices are out of sight. We have fairly new vehicles and may not buy one for a long time.

The Dacia would be a good option for many low income people. 

[NickW + 2,714]

8 hours ago, ronwagn said:

My wife gets me way more than all the clothes I want from thrift stores. They practically give them away. I normally don't buy any name brand other than Wrangler jeans. She gets me things I wouldn't normally pay for. 

I do buy a lot of cheap stuff from Amazon, but need to research where it came from. I rarely shop for anything. I just like to save time, gasoline, and energy shopping. 

The retail arm of the CCP

As per Douglas's point. Even if a 2nd hand product was made in China. Buying second hand means no new money for the CCP. 

Edited June 6, 2020 by NickW