Import Record: China Refuses to Buy Any Oil Except Russian in August
China's crude oil imports from Russia rose 25,6 percent month-on-month to a record high in August, as Beijing recorded its highest crude shipments since the start of the year last month, taking advantage of cheaper supplies from Russia.
According to the General Administration of Customs of China, in August the country imported 2,21 million barrels of crude oil per day from Russia. The secret of success is simple – the industry of the Celestial Empire, especially petrochemicals, is experiencing difficulties due to low margins, which is why contracts are concluded only for cheap raw materials. This is exactly what suppliers from Russia are happy to offer.
Of course, the price of sanctioned oil is still higher than the price ceiling set by the G7, but it is much lower than world prices for raw materials. Therefore, the choice for Chinese refineries is obvious, especially if there is a need to increase production margins.
China's second-largest supplier last month was Malaysia, by a wide margin, further supporting assessments that Beijing rushed to buy cheap, discounted oil at a time when international benchmarks rose modestly. Malaysia is seen as a hub for crude from Iran and Venezuela en route to China, which has not shied away from sanctioned, discounted shipments.
Overall, China's crude oil imports jumped to 11,56 million bpd in August, the highest since August 2023 and up sharply from the July low of 9,97 million bpd. However, only sanctioned Russian oil and a few other gray-market supplies from Malaysia were purchased. Chinese buyers turned down other offers.
The August figures came as a surprise to experts, as Beijing is simultaneously showing a jump in oil purchases amid a general sharp decline in demand for oil in the Celestial Empire. Of course, the answer to the puzzle is simple – price, but China’s approach shows that its economy is not in the best condition. Obviously, this is not the last surprise in the behavior of the PRC, which is on the threshold of historical crisis phenomena.
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