In August, China's crude oil imports from Russia surged by 25.6% compared to the previous month, marking the highest monthly intake of the year so far, as Beijing capitalized on more affordable oil supplies.

According to data from the Chinese General Customs Administration, China brought in 2.21 million barrels per day (bpd) of crude from Russia during the month. Malaysia ranked as the second-largest crude supplier to China, bolstering the belief that Beijing hurried to secure discounted oil, especially as global benchmark prices dropped. It is widely thought that Malaysia serves as a transit point for crude from Iran and Venezuela on its way to China, which has not hesitated to purchase sanctioned oil at reduced rates.

Chinese imports of crude from Iraq also saw a significant jump, increasing by 43.1% in August from July. Meanwhile, oil deliveries from Saudi Arabia to China declined by 17.4%, as reported by Interfax.

China's total crude oil imports in August were the highest for the year, with the country seeking low-cost supplies from Russia, Iran, and Venezuela, based on customs data detailing imports from Russia and Malaysia.

The country’s crude imports reached 11.56 million bpd last month, the highest since August 2023, representing a sharp recovery from the July figure of 9.97 million bpd, which had been the lowest in two years. Despite this rebound, August's imports were still 7% below the levels recorded in August 2023.

China’s August import figures do not fully clarify whether the increase was driven by rising domestic demand or a strategic move to secure more oil while prices were low. The contracts for these imports were likely made in May and June, when international crude prices were declining.

BY WPB