China may buy 8% more oil from overseas in 2016

China’s insatiable appetite for crude is at least one thing oil bulls can count on this year.

The world’s biggest commodity consumer may buy 8% more oil from overseas in 2016, taking average purchases to 7.2 million barrels a day, according to the median of seven respondents in a Bloomberg survey including FGE and Energy Aspects.

The country’s inbound shipments in the first 11 months of last year increased 8.8% to 6.63 million bpd and touched a monthly record of 7.4 million bpd in April, customs data show.



The prospect of China continuing to absorb a glut of supply from overseas will encourage investors holding out for a recovery in oil from the lowest level in 11 years. The nation, which has overtaken the US as the world’s biggest buyer on occasions last year, is taking advantage of the two-year slump in prices to hoard crude for emergencies.

Demand is expanding as the government relaxes rules to allow imports by private refiners. “Growth in China’s crude imports is a supportive factor for crude prices,” said an analyst with Vienna-based JBC Energy.