Kuala Lumpur: China’s crude oil imports from Malaysia surged by 31% in August 2024, making Malaysia the second-largest supplier of crude oil to China, following Russia. Data from the General Administration of Chinese Customs revealed that Malaysian oil exports to China reached 7.5 million metric tons (1.77 million barrels per day), significantly higher than the same period last year. Malaysia's rise comes as a surprise amid China’s overall trend of slowing imports due to reduced domestic fuel demand.
The sharp increase in imports from Malaysia, a key transshipment hub for sanctioned oil from countries like Iran and Venezuela, contrasts with a decline in supplies from Saudi Arabia. Saudi oil imports, which once made it China’s second-largest supplier, plummeted by over a third to 5.3 million metric tons (1.25 million barrels per day) as Chinese refiners reduced purchases in response to higher Saudi prices compared to more affordable alternatives.
Although imports from Russia, China’s largest oil supplier, also declined by 11% compared to last August, they still reached 9.37 million metric tons (2.21 million barrels per day). Despite this drop from last year’s high base, Russian oil shipments increased significantly from July’s 1.76 million barrels per day to August’s 2.21 million barrels per day.
Year-to-date, Russian crude oil imports rose 1.1 percent compared to 2023, while Saudi volumes decreased by 13.4 percent. Chinese refiners have been favouring cheaper Russian oil in an effort to maintain profits, despite narrowing margins in oil processing.
FIRST Business Portal addressing the potential of business capability of North East Region.
