China saw its first annual increase in crude oil imports since January in April as supplies resumed amid higher arrivals from Russia, analysts said.
Last month, China, the world’s largest importer of crude oil, imported 10.51 million barrels per day (bpd) of oil, according to data from China’s General Customs Administration, calculated by Bloomberg. This is an increase of 6.6% compared to April last year and 4% compared to March 2022, according to estimates by Bloomberg and Reuters.
Higher Chinese imports in April – as domestic fuel demand weakened amid tightening COVID restrictions in major cities such as Shanghai – may be due in part to more crude oil arrivals from Russia.
Chinese imports of Russian offshore crude jumped 20% in April, although it is unclear whether Chinese refineries bought the goods that arrived in April before or after Russia invaded Ukraine on February 24, Vortex analyst Emma Lee told Bloomberg. .
After the Russian invasion of Ukraine, China’s smaller independent refineries, the so-called teapots, continued to buy Russian crude oil such as Urals and ESPO, which are now heavily backed by Dated Brent.
However, Chinese state-owned refineries are in no hurry to buy Russian oil on the spot market, avoiding being touted as buyers of Moscow’s oil amid tightening Western sanctions against Russia. China, which has recently developed closer ties with Russia in the energy sector, has not officially condemned Vladimir Putin’s war in Ukraine, but its government has recently seemed cautious about new spot deals.
State giant PetroChina, for example, said last week that it would not buy heavily reduced Russian oil and gas, saying it was doing business with Russia under “pre-signed agreements” and, unlike India, did not want to take advantage of Russian oil, which was greatly reduced after the Russian invasion of Ukraine.
By Tsvetana Paraskova for Oilprice.com
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