Bloomberg cited Kpler data, saying on Friday, Apr 6, that tankers carrying 22 million barrels of oil from sanctioned countries have piled up off China’s coast.
China has been importing sanctioned oil from Iran and Venezuela over the past few years.
The trading of discounted oil was disrupted due to coronavirus outbreaks in many Chinese cities, including Shanghai. The energy demand of the cities has declined, and transportation has got stuck, with waiting times to unload ships increasing.
According to Xinhua News Agency, China’s National Health Commission reported 1,284 new confirmed COVID-19 cases and 21,784 new asymptomatic carriers on Wednesday.
Before the new Covid epidemic occurred, China’s apparent oil demand averaged approximately 13.7 million barrels per day in January and February.
Kpler expects China’s daily oil demand to fall by at least 450,000 barrels in April, owing to lower gasoline and jet fuel consumption.
Kpler said, “The ongoing lockdowns in China are definitely having a massive impact on the country’s mobility and consequent oil demand,” and that “There are also logistical bottlenecks.”