China’s Russian Crude Oil Imports Reach Record High
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China’s crude oil imports from Russia, including via pipelines and sea, surged by 12.5% year-over-year to 10.81 million tons, according to data from China’s General Administration of Customs. This equates to about 2.55 million barrels per day (bpd), with Russia retaining its position as China’s top supplier of crude.
China’s previous record for Russian oil imports was 2.56 million bpd in June 2023.
As per Oilprice, seven Russian sanctioned tankers offloaded their cargoes at Chinese ports in March as Moscow sought to clear a supply glut after the US tightened its sanctions.
Over 10 million barrels of crude produced by Sakhalin-1, a unit of Rosneft, have been floating in storage for the past three months amid payment complications and sanctions on shipping companies and crude tankers.
Data from consulting firm Kpler estimates that seaborne shipments from Russia will hit a record high of 1.82 million bpd, including 440,000 bpd of Sokol and 967,000 bpd of ESPO Blend.
Russia remained China’s top supplier throughout 2023, averaging 2.14 million bpd despite Western sanctions and a price cap imposed on the Kremlin over its 2022 invasion of Ukraine.
Growth Comparison of China’s Oil Suppliers. Source: Reuters
Imports from Saudi Arabia, previously China’s top supplier, totaled 6.3 million tons in March, equivalent to 1.48 million bpd, down by 29.3% from the same month last year.
Riyadh said it would extend its 1 million bpd voluntary cut until the end of June, which will keep its output at around 9 million bpd.
The world’s top exporter kept its official selling price for flagship Arab Light crude to Asia for March at a premium of $1.50 a barrel to the Oman/Dubai benchmark as the kingdom seeks to defend market share.
Imports from Malaysia—a transshipment point for sanctioned Iranian and Venezuelan cargoes—rose by 39.2% year-on-year to 13.7 million tons, or 3.23 million bpd, in the first quarter.
Official data released earlier this week showed that China’s crude oil processing in March climbed to a five-month high on strong demand following the Lunar New Year holidays and as refiners rebuilt fuel inventories ahead of seasonal maintenance. The Asian nation is also expected to issue new export quotas for oil products in April, consultancy OilChem said.
The flow of crude to the United States also extended, with 37 tankers showing the country as their next destination, the highest since February 2.
Source: Oilprice
