China’s crude oil imports from Russia fell sharply in April, dropping below 2 million barrels per day (bpd) for the first time in months. According to Chinese customs data analyzed by Reuters, imports from Russia declined 12.9% year-on-year to 1.96 million bpd. Compared to March, Russian crude imports also fell 5.8%, down from 2.08 million bpd.
Meanwhile, imports from Malaysia nearly doubled compared to a year ago, rising 96.9%. Malaysia has become a key trans-shipment hub where shadow fleets use ship-to-ship transfers to hide Iranian crude’s origin.
In April, Malaysia was China’s second-largest crude supplier with 1.93 million bpd, surpassing Saudi Arabia. Saudi crude imports to China fell 12.8% year-on-year to 1.35 million bpd.
Chinese customs data showed no direct crude imports from Iran in April, but the spike in shipments from Malaysia suggests Iranian oil is entering China through indirect routes.
Although China increased its crude imports in March and April, analysts say this is not necessarily due to rising fuel demand. Instead, Chinese refiners appear to be stockpiling cheaper crude oil amid uncertainties over future sanctions on certain supplies.
Emma Li, senior market analyst at Vortexa, said the surge in seaborne imports was driven by worries about possible supply disruptions due to tightening US sanctions. This led Chinese refiners to increase bookings and build up onshore inventories.
“Uncertainty and lower oil prices prompt aggressive stockpiling by Chinese majors, while sanctioned crude imports hold near record highs,” Li wrote.
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