As reported by Reuters, Chinese oil imports from Russia in 2024 increased by 1% and reached a record level compared to 2023, while purchases from Saudi Arabia fell by 9% as refiners chased discounted Russian supplies to cope with weakening profitability. According to the General Administration of Customs of China, the volume of supplies from Russia, including pipeline and sea shipments, was 2.17 million barrels per day.
Saudi Arabia, the largest OPEC producer, supplied about 1.57 million barrels per day, down from 1.72 million barrels per day in 2023.
For most of 2024, China's import of Saudi oil was constrained by the growing share of cheaper oil from Russia. Saudi Arabia's market share increased in the fourth quarter after a sharp price cut by OPEC countries.
Imports from Malaysia, a major transshipment point for sanctioned oil from Iran and Venezuela, jumped by 28% last year to 1.41 million barrels per day, making it the third largest supplier after Saudi Arabia.
Supplies from Brazil also rose sharply, increasing by 17%, while imports from the US decreased by 36%.
The total volume of crude oil imports to China, the world's largest buyer, fell by 1.9% last year, marking the first annual decline not related to the pandemic, as weak economic growth and peak fuel demand led to reduced purchases.
It is unlikely that the trend will continue this year, as after US sanctions on January 10, the cost of transporting oil from the port of Kozmino in the Far East to China rose to $5–5.5 million, compared to about $1.5 million before the new sanctions were announced by Washington. "Gazprom Neft" and "Surgutneftegas" were sanctioned. These companies, as well as insurers and traders, were added to the blacklist, which also included 183 vessels. According to the International Energy Agency, tankers under sanctions were responsible for transporting about 22% of the crude oil shipped by sea in 2024.
Photo: Reuters