The Chinese economy was fighting with the coronavirus for three months. Well, the situation came under control timely. However, during the virus spread, there was the import of crude oil too in colossal quantity by china. As per reports by Reuters, China was importing more than 10 million barrels per day. According to data by a customs official, in the first quarter, around 130-million-ton crude oil was imported.
As per Reuters reports, when we compare the import of crude oil with the last year march’s month. There is an increase of more than 11 percent import of crude oil. It indicates that China was stockpiling crude oil taking benefit from cheap crude oil prices.
According to a Chinese analyst, the rise in crude imports will keep increasing for the next two months. As China has begun to recover and life is back to normal. Lockdown is uplifted from all the cities. It has started its production with double speed as around the world production is closed. The Chinese economy will make a profit by exporting goods around the globe.
China is closely monitoring the situation to control the second wave of coronavirus pandemic. It is indispensable to do so, as it will again force the country to halt its production.
China practices buying crude oil when prices are low. This year, China will also purchase crude oil in bulk and will store in oil tankers. Crude oil has hit 30-year low prices. India is also a significant importer of crude, even trying to reserve crude oil. However, India has less storage capacity as compared to China.