How Asia’s Crude Oil Imports Impact the Crude Oil Market

Asia’s crude oil imports 

In this part of the series, we’ll look at Asia’s crude oil imports and demand.

How Asia’s Crude Oil Imports Impact the Crude Oil Market

Imports and demand in Asia

  • South Korea’s Ministry of Trade, Industry and Energy reported that South Korea’s crude oil imports rose 15.0% to 89.8 million barrels in September 2016 compared to the same period in 2015.
  • A Reuters survey reported that India’s crude oil imports rose 17.7% to 4.5 MMbpd (million barrels per day) in September 2016 compared to the same period in 2015. For more, read India’s Crude Oil Imports Hit Record: How Will It Affect Oil Market?
  • China’s General Administration of Customs reported that China’s crude oil imports rose 18.0% to 8,040,000 bpd (barrels per day) in September 2016 compared to the same period in 2015. For more, read China’s Crude Imports Surpass US Crude Imports in September.
  • Japan’s crude oil imports fell 4.6% to 3.4 MMbpd in September 2016 compared to the same period in 2015. It’s at its lowest level since 1988.

High demand from Asian countries such as China, India, and South Korea could have a positive impact on crude oil prices. High crude oil prices could have a positive impact on the margins of producers such as Contango Oil & Gas (MCF), Stone Energy (SGY), Goodrich Petroleum (GDP), and W&T Offshore (WTI).

Crude oil prices also impact ETFs and ETNs such as the VelocityShares 3x Inverse Crude Oil ETN (DWTI), the United States Brent Oil ETF (BNO), the iShares Global Energy (IXC), the ProShares UltraShort Bloomberg Crude Oil (SCO), the PowerShares DWA Energy Momentum ETF (PXI), the Fidelity MSCI Energy ETF (FENY), the ProShares Ultra Oil & Gas (DIG), and the Vanguard Energy ETF (VDE).

In the next part of this series, we’ll take a look at gasoline demand and how that impacts crude oil prices.