Weak demand pushes July oil stockpiles near record

Stockpiles of crude oil in China increased in July to near the record levels set in May, Reuters reported, citing a report in a government industry newsletter. Strategic and commercial reserves rose to 38.7 million metric tons, or 282.5 million barrels after falling slightly in June. Stockpiles in May were 38.75 million mt. The buildup, which indicates that oil supplies are being raised faster than they can be consumed, leaves China with levels approximately equivalent to 76 days of net crude imports. Diesel stocks also rose in August as demand failed to keep up with supply; inventories rose 15% month-on-month in July to 43 million barrels.