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China's Nov petroleum imports to rebound as low prices enhance buying

China's crude oil imports are set to rebound in November after sharp price cuts increased demand for Iraqi and Saudi oil, offsetting a drop in Iranian supply, according to experts, traders and shiptracking data.

A downturn of 17% in global oil rates in the 3rd quarter likewise stimulated Chinese stockpiling demand while refiners prepare for greater seasonal fuel usage ahead of the Lunar New Year vacation looking in late January, analysts say.

The November rebound in volumes for the world's leading crude oil importer comes after 6 successive months of yearly declines as Chinese refiners dealt with weak margins and run cuts.

China's seaborne petroleum imports are forecast at around 11.4 million barrels per day (bpd) in November, the highest level because August 2023, Kpler information revealed.

Vortexa anticipates China's November seaborne petroleum imports at about 10.7 million bpd, the highest this year, pointing out growth of 20% month-on-month development in Middle Eastern supplies to China, led by Saudi and Iraqi oil.

Chinese purchasers, consisting of Asia's largest refiner Sinopec and PetroChina, increased crude purchases around August for November-delivery shipments, gearing up for refinery restarts after fall upkeep and bracing for a seasonal spike in demand for improved items, stated Xu Muyu, a senior Kpler expert.

Imports from Saudi Arabia and Iraq rebounded in November following sharp cuts in official market price (OSPs) by Saudi Arabia and Iraq for October-loading cargoes that will get here in November and December, stated Xu and several trade sources.

Saudi Arabia and Iraq and are set to be the top suppliers of seaborne crude to China this month, followed by Russia, Kpler data showed.

That offset a drop in Iranian oil supply to 1.08 million bpd, from 1.6 million bpd in October, the information showed.

Loadings at export terminals including Iran's Kharg Island dropped substantially in October from September, with ship owners concerned about possible Israeli attacks on Iranian oil facilities that did not occur.

The fall in Brent crude under $70 per barrel in early September, the most affordable because December 2021, likewise produced an chance for China to resume stockpiling.

China asked state oil business this year to add 8 million metric tons, or nearly 60 million barrels, of crude to the country's emergency stockpiles to increase supply security.

Stocking in the eastern province of Shandong, where most refiners are located, started in late September with at least 5 million barrels of Russian crude and 3 million Middle East crude imported over six weeks, Vortexa analyst Emma Li composed in a. report.

More Russian ESPO crude is most likely to enter China's strategic. petroleum reserve (SPR) in coming weeks, she included.

In addition, some independent refiners have actually likewise bought. crude to use up their import quotas before year-end, traders. stated.

In an indication of more imports in coming months, Shandong-based. Landbridge Petrochemical purchased of Angolan crude. including Pazflor and Mostarda from TotalEnergies for January. delivery, they said, after costs for the West African oil. dropped to levels similar to Russian ESPO.

Landbridge did not instantly respond to Reuters' email. request for remark.

(source: Reuters)