Chinese oil imports drop over last two months in seasonal lull

China’s oil imports eased in the first two months of the year on a seasonal lull due to the Lunar New Year break, and as private refiners held off on some purchases.

Inflows totaled 88.3 million tons in January and February, according to data released by General Administration of Customs on Thursday. That’s equal to an average of 10.8 million barrels a day over the 60-day period, about 6% lower than December’s pace, according to Bloomberg calculations.

The crude market is tracking trends in China, the biggest oil importer, amid concerns consumption growth may slow this year. The nation’s largest energy producer is among those predicting a dropoff in demand expansion, but prices are still managing to push higher aided by OPEC+ supply cuts.

China’s independent refiners, known as teapots, have been in a standoff with suppliers including Iran over discounts since late last year, which may also have contributed to the subdued year-to-date imports.

Chinese refineries typically slow production ahead of and during the weeklong Lunar New Year break as factories shut, before a rebound in March. The government issues combined data that cover both January and February to smooth out the holiday distortions.