Russian oil imports from China surged 25% as Beijing seeks cheap crude

China’s crude imports from Russia rose 25.6 percent month-on-month in August as Beijing last month welcomed its biggest monthly crude arrivals this year, taking advantage of cheaper supplies.

China imported 2.21 million barrels per day (bpd) of crude oil from Russia in August, according to data from China’s General Administration of Customs, cited by Russian news agency Interfax.

China’s second-biggest supplier last month was Malaysia, further supporting estimates that Beijing rushed to buy cheap, discounted oil at a time when international benchmark prices also fell. Malaysia is believed to be a stopover for crude oil from Iran and Venezuela on its way to China, which has not shied away from sanctioned supply at reduced prices.

Chinese crude imports from Iraq rose 43.1 percent in August from July, while Saudi supplies to China fell 17.4 percent, according to data compiled by Interfax.

As China imported the largest monthly volume of crude oil in a year in August, it sought cheap supply from Russia, Iran and Venezuela, judging by customs data on crude imports from Russia and Malaysia.

Last month, China imported the largest monthly volume of crude oil for a year as purchases rose as international oil prices fell when the commodity was contracted.

China’s crude imports rose to 11.56 million bpd in August – the highest level since August 2023 and a major rebound from July’s low of 9.97 million bpd, according to official Chinese data reported by Reuters columnist Clyde Russell.

China’s July crude oil imports were the weakest in two years. Crude oil arrivals rebounded in August, but were still 7% lower than in August 2023.

Data on China’s crude oil imports for August cannot provide a definitive answer to the question many analysts have pondered this year — whether Chinese imports reflect increased demand or Beijing’s inclination to contract more volumes when prices of oil are lower. August imports were likely contracted in the May and June windows when international crude oil prices were falling.

By Charles Kennedy for Oilprice.com

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