China’s imports of Saudi oil fell significantly in June, according to official data released on Saturday.
Shipments from Saudi Arabia, China’s second-largest oil supplier, fell 14% year-on-year to 6.82 million tonnes, the data showed.
For the first half of 2024, imports from Saudi Arabia decreased by 13% compared to the same period last year, totaling 40.38 million tons, equivalent to 1.62 million barrels per day.
In contrast, China’s total crude oil imports from Russia, its largest supplier, rose 5% in the first half of the year as refiners took advantage of lower-priced crude.
However, imports from Russia in June, including via pipelines and shipments, fell 20% year-on-year to 8.43 million tonnes, or 2.05 million barrels per day.
This represents a decrease from 2.1 million barrels per day last May and a significant decline from the all-time high of 2.56 million barrels per day recorded in June 2023.
The drop in Russian imports is partly due to weak demand from China’s independent oil processors. These companies have cut their operations to their lowest levels since early 2020 due to shrinking margins amid weak domestic fuel demand.
In addition, demand for Russian Urals crude loaded from European ports has fallen, as tensions in the Red Sea have pushed up freight rates.
China’s total crude oil imports fell 11% from a record high a year ago. Over the first six months of 2024, the country saw a rare 2.3% annual decline in crude oil imports, reflecting weaker-than-expected domestic demand as the world’s second-largest economy struggles to recover.
It is worth noting that China did not record any imports from Iran or Venezuela last month. Meanwhile, shipments from the United States fell 60% year-on-year to 1.21 million tons in June.
