China's crude Oil processing amounted to nearly 15 million barrels per day in October, as reported by the National Bureau of Statistics this morning, Commerzbank's commodity analyst Carsten Fritsch notes.

China continues to build up its Oil reserves

"Although this was slightly less than in the previous month, it was 6.5% more than in the previous year. In the first ten months, Chinese refineries processed 4% more crude Oil than in the same period last year. This suggests that, unlike last year, there will be an increase for the year as a whole."

"Taking into account the available data on crude Oil production and crude Oil imports, there was a further build-up of stocks by 690,000 barrels per day in October. Stockpiling was thus slightly higher than in the previous month, but significantly lower than in earlier months this year."

"The question is how long these purchases will continue and thus absorb part of the oversupply on the Oil market."