China-bound oil tankers hit two-year low in warning for bulls

The number of supertankers headed for China dropped to the lowest in almost two years, adding to recent concerns about demand in the largest oil importer during the second half of the year.

Only 86 of the tankers are indicating China as their next destination in the coming three months, shrinking by five from last week. That is the lowest weekly tally since August 2022 in data compiled by Bloomberg. 

The outlook for Chinese demand this half is showing signs of softness, potentially providing a headwind for crude prices. Concerns include slower-than-expected return of refineries from seasonal maintenance, softer purchases from some key suppliers in July, and a potential drop-off in monthly import volumes.

Some 35 tankers are headed for the US, dipping by two from a week ago. Fourteen vessels sailed for Angola, the highest rate since late-April. The southern African producer has been targeting increased exports since it left the OPEC+ producer group. Click here for a PDF giving more details on destinations. 

A total of 546 vessels signaled future destinations on Friday in data based on vessels with arrival dates through Oct. 3 on MAP. Journeys are subject to change, and 37 of the tankers didn’t provide a clear destination.