China imported 1% more oil from Russia in 2024 than in 2023, breaking a record. At the same time, purchases from Saudi Arabia fell by 9%. This is because China sought cheaper oil to compensate for weakening margins
For example, if the price of oil on the market falls and the costs of its extraction and transportation remain high, the companyʼs profits decrease.
Reuters reports on this.
According to the General Administration of Customs of China, the country imported 108.5 million metric tons in 2024, mainly through pipelines and sea shipments. Thatʼs roughly 2.17 million barrels per day.
In China, oil supplies from Russia were supported by both independent oil refineries and state-owned enterprises in this industry.
In comparison, Saudi Arabia shipped 78.64 million tons, or about 1.57 million barrels per day. This is 1.72 million barrels per day less than in 2023. China has been limiting imports from Saudi Arabia due to rising prices and the fact that the share of oil from Russia and Iran at a lower price has increased.
Meanwhile, Saudi Arabiaʼs share of Chinaʼs imports rose in the fourth quarter after Iranian supplies shrank and OPEC
Total crude oil imports into China, the worldʼs largest crude oil buyer, fell 1.9% in the first annual decline outside of the pandemic, as weak economic growth and lower demand for fuel weighed on the economy.
Malaysia is a leading transshipment hub for sanctioned oil from Iran and Venezuela. China imported 28% more oil from there than usual last year, making it the third-largest importer after Saudi Arabia. In December, nearly 290,000 tonnes were exported from Venezuela. Total supplies from the country in 2024 were 1.5 million tonnes, or 30,000 barrels per day.
Almost all of the Iranian oil China imports goes to independent refiners, including large integrated plants and traditional smaller units, all of which are under pressure from low margins and weak demand for fuels and chemicals.