OIL: China Crude Imports from Malaysia in May Fell 36.2% on the Month
Jun-20 08:00
China’s crude oil imports from the trans-shipment hub of Malaysia fell in May from the previous month, according to General Administration of Customs data.
- Imports from Malaysia fell 36.2% on the month to 5.07m tons, or 1.19mb/d, in April and were 13.3% lower year on year. Compares to a previous peak of 8.75m tons in March. Malaysia is used as a trans-shipment point for sanctioned cargoes from nations like Iran and Venezuela.
- China crude imports from Russia were down 5.9% year on year at 8.38m tons, or 1.97mb/d, although rose from 8.07m tons in April.
- Shipments from Saudi Arabia fell 27.1% on the year to 5.42m tons, or 1.28mb/d, and from 5.53m the previous month.
- Imports from Brazil rose 42% on the year to 4.77m tons from 3.69m tons last month while Iraq import were up from 4.59m tons in April to 5.37m tons.
- There were no recorded imports from Iran or Venezuela in the month.
- Customs data showed China's crude oil imports fell to the lowest in four months and were narrowly down by 0.78% on the year to 46.6m tons in May from 48.06m toms in April.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BONDS: BTP/Bund spread is eyeing the initial support
May-21 07:43
- The BTP/Bund spread, while showing a small touch wider, it continues to make an attempt through that Psychological 100.00bps level.
- As noted a Week ago, immediate downside target is at ~97.7bps (September 2021 low).
- And a further Tightening interest through would Open to 90.4bps (February 2021 low).
SWAPS: Citi Cautious On Idea Of Further EUR Steepening In Immediate Term
May-21 07:41
Citi identify several risks to existing steepener positioning on the EUR swaps curve (with a particular focus on 30s50s):
- “While originally around half of the total €1600bn assets (at end-2024) were targeted to transition each on 1 January 2026 and 1 January 2027, the DNB’s Q4 survey showed a shift later. Recently PME has shifted its transition from 1 January 2026 to 1 January 2027 and PostNL to April 2026, due to administrative difficulties. This could delay/stagger these unwinds”.
- “Any delay in transition could also be an incentive for funds with policy funding ratio under 120%. They could wait for a recovery in funding ratios from fiscal pressure on global long-end swaps to then add interest rate hedges at cheap levels”.
- Overall, they “suspect that any further 30s50s steepening due to this transition might only happen later in the year when more clarity emerges, for instance, from the next DNB survey, potentially published in July”.
- However, they stress that “the asymmetric long-end exposure to front-end swings has become more compelling over the last six months - which we believe supports 30s50s steepeners from a broader macro standpoint”.
GILTS: 2-Year Yields Through Next Resistance
May-21 07:36
2-Year yields move above the April 10 high (4.078%) following the CPI data, peaking at 4.088%.
- The next upside level of note comes in at the downtrend line drawn off the January high (4.119% today).
- April 9/10 highs are unchallenged across the rest of the curve.
