China Crude Imports Rise to Record as Sinopec Cut Maintenance

China, the world’s second-biggest oil consumer, increased crude imports in July to a record high as the country’s largest refiner cut maintenance plans by 40 percent in the third quarter.

The nation bought a net 25.9 million metric tons of crude, or 6.13 million barrels a day last month, according to data published today on the website of the Beijing-based General Administration of Customs. That compares with the previous high of 5.98 million barrels a day in May 2012 and is 13 percent higher than the June figure.

China Petroleum & Chemical Corp. (386), Asia’s largest refiner that’s known as Sinopec, has scheduled maintenance at its refineries in Yanshan, Hainan and Cangzhou this quarter that will shut about 18 million tons a year of crude-processing capacity, according to ICIS-C1 Energy. In the same quarter of 2012, the refiner idled about 30 million tons of capacity.

 “Such a strong demand is mainly because Sinopec has reduced domestic maintenance during this quarter compared with last year,” San Yansong, an oil analyst with Shanghai-based C1 Energy, said by phone from Guangzhou. “We will see more overseas crude purchases from Sinopec in August and September.”

The jump in China’s oil purchases resulted in a 10.9 percent gain for total imports of goods last month, today’s data show. The advance exceeded the median of economists’ estimates for a 1 percent increase. Exports rose 5.1 percent from a year earlier, beating an estimate for a 2 percent gain.

Data on China’s July fuel imports is scheduled for release on Aug. 21.

(businessweek.com, edited by Topco)