China's October Oil Imports Hit 7-Month High Driven by Middle East
Translated & summarized from NEWSru Israel by baba
China's crude oil imports reached a seven-month high in October, averaging 9.9 million barrels per day, driven by increased supplies from Saudi Arabia, Iraq, and the UAE. This marks a 9.4% rise from September but a 13.3% decrease compared to October last year. The recovery follows disruptions in the Strait of Hormuz earlier in the year, which had significantly reduced imports. Future imports may be affected by rising oil prices, while natural gas imports saw a year-on-year increase.
The story in 6 lines · by baba
- China's October crude oil imports reached 9.9 million barrels daily, the highest since March.
- Supplies from Saudi Arabia, Iraq, and the UAE drove the increase in Chinese oil imports.
- October imports were 13.3% lower than the same period last year.
- Disruptions in the Strait of Hormuz had previously caused a significant drop in Chinese oil imports.
- China utilized substantial oil reserves to offset import reductions earlier in the year.
- Future Chinese oil imports may decline due to rising Brent crude prices.
China imported approximately 41.9 million tons of crude oil in October, averaging 9.9 million barrels per day, the highest volume since March. This increase was primarily fueled by renewed supplies from Saudi Arabia, Iraq, and the UAE, which are gradually restoring production and exports. These nations have also lowered official selling prices for Asian buyers to maintain market share.
Despite the monthly rise, October's imports were still 13.3% lower than the same month last year. Compared to September's daily average of 9 million barrels, the October figure represents a roughly 9.4% increase. Tanker tracking data suggests China's imports from the Middle East exceeded 5 million barrels per day in October, with Chinese buyers having purchased at least 80 million barrels of Saudi oil since mid-September.
In March, six Middle Eastern producers accounted for about a third of China's total oil imports. However, shipping disruptions in the Strait of Hormuz, attributed to the conflict between the U.S. and Israel and Iran, caused a significant drop in Chinese imports. During the second quarter, daily imports fell to 8.1 million barrels, a decrease of about one-third from the first quarter, and dipped below 8 million barrels per day in May and June for the first time since 2016.
China's ability to absorb these import fluctuations has been supported by substantial reserves. The country held an estimated 1.4 billion barrels in commercial and strategic stockpiles before the conflict, sufficient for about 120 days of normal imports. Refineries actively drew from these reserves starting in May, with daily withdrawals potentially reaching a record 1.6 million barrels in September. An additional 1 million barrels per day are supplied via pipelines from Russia and Central Asia.
Oil deliveries to Chinese ports are typically contracted two months in advance. October's shipments were contracted in early August when Brent crude briefly fell below $80 per barrel. With Brent prices exceeding $100 in September, future imports may decline. Meanwhile, China's refined product exports decreased in October, while its refined product imports rose. Natural gas imports, both pipeline and LNG, increased by 2.4% year-on-year to 10 million tons.
Brent crude traded between $92-$94 per barrel this week, following a significant drop last week. Reports indicate Qatar's Prime Minister conveyed an Iranian proposal for an interim agreement to reopen the Strait of Hormuz to the White House, with President Trump stating military action against Iran is not currently necessary. Despite these developments, passage through the Strait of Hormuz remains approximately 65% below pre-war levels, according to UKMTO.