In March, Russia solidified its position as China’s primary oil supplier, with imports increasing by 12.5% from the previous year to 10.81 million metric tons, or 2.55 million barrels per day (bpd), as reported by China’s General Administration of Customs.
This figure is close to the record 2.56 million bpd imported in June 2023.
Amid escalating U.S. sanctions, Russian oil, particularly Sokol crude, continued to find its way into Chinese markets.
Seven Russian tankers delivered Sokol shipments to Chinese ports in March, managing the surplus caused by sanctions-related disruptions.
Over the last three months, more than 10 million barrels of oil from Sakhalin-1, operated by Rosneft, were held in floating storage due to payment and transportation issues.
The import boost was also supported by the strategic stockpiling of Russian crude by state-owned CNOOC.
According to data from Kpler, a consultancy, sea-borne imports from Russia were expected to reach a new high of 1.82 million bpd, including significant contributions from Sokol and ESPO blends.
Russia maintained its lead over Saudi Arabia throughout 2023, delivering an average of 2.14 million bpd.
Despite international sanctions and a price cap following the invasion of Ukraine in 2022, Russia and other OPEC+ members continued a voluntary output reduction of 300,000 bpd in early 2024 to support global energy prices.
Conversely, imports from Saudi Arabia dropped significantly to 6.3 million tons in March, or 1.48 million bpd, marking a 29.3% decrease from the previous year.
Saudi Arabia extended its voluntary production cut of 1 million bpd until the end of June, aiming to stabilize its production at about 9 million bpd.
Saudi Arabia also maintained the March official selling price for its Arab Light crude to Asia, pricing it at $1.50 above the Oman/Dubai average to compete effectively in the Asian markets.
The data also highlighted a surge in imports from Malaysia, which acts as a hub for re-routing sanctioned oil from Iran and Venezuela.
Imports from Malaysia rose by 39.2% to 13.7 million tons, or 3.23 million bpd.
Following a temporary easing of U.S. sanctions, China received a notable shipment from Venezuela in February, although sanctions were reinstated in March due to unmet electoral commitments by Venezuelan President Nicolas Maduro.
The customs report listed zero imports from Iran for the period, reflecting ongoing sanction effects.
The detailed breakdown from Reuters showed the varying import volumes and year-on-year changes for China’s major oil suppliers.