China Will Return And When It Does, You Know What That Means For The Oil Market

China is trying to conceal a dirty little secret right now. It is concealing the fact that the current crude import level is completely unsustainable because its onshore crude inventories continue to decline.

As you can see from the chart above, Kpler has pegged China's seaborne crude imports around ~8 million b/d for the last 3 months. But this level is clearly unsustainable as China's onshore crude inventories continue to decline.

IEA just reiterated in its OMR this month that this is the largest downward revision to China's oil demand it has ever made.