Petroleum imports to Asia in the first half of 2024 slightly declined contrary to expectations, primarily due to reduced purchases by China.

Data from financial firm LSEG showed that Asian petroleum buyers imported 27.16 million barrels per day (bpd) in the first six months of 2024, a decrease of 130,000 bpd compared to the same period in 2023, mainly due to lower imports by China.

It is noteworthy that China’s petroleum imports reached 11.28 million bpd last year, which was a record high. At the beginning of 2024, it was predicted that China’s imports would slow this year due to problems in the real estate market.

During the first half of this year, China’s foreign petroleum purchases averaged 11.08 million bpd, a significant decline from last year’s record. This reduction has sown doubts among traders who had predicted another strong year for China’s petroleum imports and prices.

On the other hand, petroleum imports to India saw steady growth in the first half of this year, reaching 5.1 million bpd in May, about 5.6% higher than in April. India’s imports averaged 4.85 million bpd in the first six months of the year.

The overall decline in petroleum imports to Asia runs contrary to predictions that this region would drive demand growth. For example, the International Energy Agency (IEA) had forecasted that global petroleum demand growth this year would reach 960,000 bpd, with 900,000 bpd of that coming from Asia.

According to a report by Oil Price, OPEC remains typically more optimistic, expecting Asian petroleum demand to grow by 1.3 million bpd this year, with 720,000 bpd coming from China. However, the latest import statistics suggest that achieving this level of growth will be challenging.