LONDON: International market observed a tumble in crude oil prices on Monday after China’s oil imports dropped sharply and markets were oversupplied following Organisation of the Petroleum Exporting Countries’ (OPEC) decision to keep its production targets unchanged.
The world’s biggest net oil importer China, bought nearly a quarter less crude in May than the previous month, according to data from China’s General Administration of Customs. Its imports of oil products also fell just over six percent while product exports fell 10 percent.
The report of fall in import from China came after OPEC decided to stick its policy of not limiting to its output, which is currently above 30 million barrels per day. Both intensify worries about an excess in a market where millions of barrels of crude are stored in tankers without a buyer.
“The world’s crude supply remains in excess of supplies,” said Yasushi Kimura, president of the Petroleum Association of Japan (PAJ) after OPEC’s decision.
Adding to the glut, analysts also expect U.S. drilling to start increasing again in the second half of this year following 26 weeks of declines.
