China's Crude Oil Imports Expected to Recover
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Record Import Decline: According to JPMorgan, China's crude oil imports plummeted by a historic 4.8 million barrels per day from February to May, a steeper drop than the 4 mbd decline during the pandemic's peak in 2020, indicating significant demand impact from the Middle East conflict.
- Inventory Drawdown: In May, China's oil imports fell to 7.8 mbd, the lowest since December 2017, as Beijing reduced domestic oil inventories for the first time in over a year, reflecting heightened market tensions and supply concerns.
- Recovery Expectations: JPMorgan anticipates that around 3 mbd of the demand decline is temporary, with a gradual recovery expected from August as chemical sector demand rebounds and China seeks to replenish its strategic petroleum reserves, indicating a potential stabilization in the market.
- Beneficiary Energy Producers: JPMorgan's top pick is PetroChina, forecasting a first-half dividend of 0.27 yuan ($0.04) per share, translating to an annualized yield of 6.4%, significantly higher than the projected 4.8% yield for domestic rival Sinopec, showcasing confidence in the recovery of oil demand.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 333.460
Low
260.00
Averages
341.38
High
400.00
Current: 333.460
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Conference Call Access: The public can join the call by dialing 1 (888) 324 3618 in the U.S. and Canada or +1 (312) 470 7119 for international callers, demonstrating the firm's openness to global investors and encouraging broad participation.
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- Digital Banking Trend: As a next-generation lender, JPMorgan seeks to innovate in digital banking while leveraging its strong brand presence to meet the demand for digital-first banking solutions in Europe.
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