Official data revealed that China’s crude oil imports experienced a 6% decline in March compared to the previous year, although they remained robust due to a surge in Russian shipments. The General Administration of Customs reported that crude imports for March amounted to 49.05 million metric tons, approximately 11.55 million barrels per day (bpd), marking a 6.23% decrease from the high import levels of 12.3 million bpd observed in March 2023.
Despite the monthly decrease, total crude imports for the first quarter of this year reached 137.4 million tons, reflecting a 0.7% increase from the corresponding period in the previous year, which stood at 136.3 million tons.
The surge in Russian crude imports in March, reaching a potential record high of 1.816 million bpd, was attributed to significant arrivals of sanctioned Sokol fuel. Analysts anticipate this spike to be a temporary occurrence, as Russia plans to reduce its crude exports, prompting Chinese refiners to consider exporting clean petroleum product barrels when domestic demand is subdued.
Although China’s property crisis has posed challenges to the economy and diesel demand, manufacturing activity has shown unexpected resilience. March saw the official manufacturing purchasing managers’ index (PMI) expand for the first time in six months, driven by increased export orders.
Moreover, domestic flight capacity in March rose by approximately 1.4% compared to the same period last year, with a notable growth in jet fuel demand stimulated by a substantial 90% increase in international flight capacity from 2023.
In the realm of natural gas, total imports, including piped gas and liquefied natural gas (LNG), reached a record high in the first quarter, influenced by plummeting global LNG prices. March alone witnessed a 21.1% year-on-year increase in natural gas imports, amounting to 10.76 million tons.
Additionally, exports of refined oil products, encompassing diesel, gasoline, aviation fuel, and marine fuel, recorded a 9.4% rise from the previous year, reaching 6.02 million tons.