BEIJING, (Reuters) – China’s October imports fell to their lowest level since September 2018. Large state-owned refiners withheld imports due to rising prices. Independent refiners had to import within a limited quota.

Data from the General Administration of Customs on Sunday showed that 37.8 millions tonnes of crude oil was imported by China last month. That’s equivalent to 8.9 Million barrels per daily (bpd).

This is a decrease of 9.99 million bpd for September, and 10.02million bpd during the same time last year.

The crude arrivals for the period January to October were 425.06 millions tonnes or 10.21million bpd. This was 7.2% less than the year prior, according to customs data.

For the second month, crude imports fell on a monthly base. This was despite a 62% increase in crude oil prices as economies around the world are freed from COVID-19 restrictions. The rise has fueled fuel demand.

Purchases were also affected by Beijing’s clampdown on illegal trading in crude oil.

On Sunday, customs data showed that China’s October refined oil product exports fell by 31.8% to 3.95 Million tonnes.

Imports of natural gas, both piped and liquid (LNG), increased 24.6% in October compared to a year ago.

Imports of oil could rise in November, as refiners promise to fix a shortage in gasoline and diesel supplies which has driven fuel prices up.

Beijing issued 14.89M tonnes of crude oils import quotas to independent refiners in the period ending 2021. Zhejiang Petrochemical Corp. of China (ZPC), which operates China’s biggest refinery, also received a separate quota totalling 12 Million tonnes.

(Graphic: China’s diesel and gasoline prices, https://fingfx.thomsonreuters.com/gfx/ce/zgpomkbbapd/China%20diesel%20gasoline%20prices.jpg)