China began the third quarter with weaker-than-expected key economic indicators, raising additional concerns about the health of its economy and its demand for crude oil in the coming months. Retail sales increased by just 0.6% in July from a year earlier, down from 1% annual growth in June, official Chinese data showed.
Growth in industrial output also fell short of expectations, with a 4.5% increase in July versus 4.8% expected growth, and also slowing from a 5.3% rise in June.
However, China remains a major opportunistic buyer of crude, taking advantage of low oil prices to stockpile reserves, which allows it to reduce crude oil imports if oil prices spike or if supply is choked.
Total Chinese crude oil imports rebounded in July from the decade-low in June, with a 22% jump from June to an average of 8.45 million barrels per day.
