China is attempting to refill its oil reserves. Chinese crude imports rose +2.2 million tons in August, to 37.9 million tons, marking their 2nd consecutive monthly increase. This brings the 2-month increase to ~9.0 million tons, or a ~33% recovery from the total drop between January and July this year. The increase in crude supply has also allowed China to ramp up fuel exports, with overseas sales of gasoline and diesel surging +29% last month. However, China's crude imports were down -23% year-over-year and -32% below this year's peak. Meanwhile, China’s massive oil inventories are estimated at more than 1.2 billion barrels, giving the country ample flexibility to reduce purchases as prices rise. China's massive oil stockpile is growing again.(The Kobeissi Letter)