In March, Russia maintained its position as China’s leading oil supplier, with Chinese imports, including both pipeline deliveries and sea-borne shipments, reaching 10.81 million metric tons or 2.55 million barrels per day (bpd). This marked a 12.5% increase compared to the previous year, coming close to the monthly record set in June 2023 at 2.56 million bpd, according to data from the General Administration of Customs.
The surge in imports was attributed to the offloading of stranded Sokol cargoes by seven Russian tankers, as Russia took steps to address an oversupply caused by tightened U.S. sanctions. Notably, more than 10 million barrels of oil supplied by Sakhalin-1, a unit of Rosneft, had been held in storage due to payment difficulties and sanctions on shipping firms and vessels carrying the crude.
Furthermore, state-owned CNOOC’s stockpiling of Russian crude for strategic reserves also contributed to the boost in imports from Russia. Sea-borne shipments from Russia were forecasted to reach a record high, with 1.82 million bpd, including 440,000 bpd of Sokol and 967,000 bpd of ESPO.
Despite Western sanctions and a price cap following Russia’s 2022 invasion of Ukraine, Russia remained China’s top oil supplier throughout 2023, shipping 2.14 million bpd. Additionally, in collaboration with other OPEC+ members, Russia extended a voluntary reduction in crude oil output of 300,000 bpd into the first quarter of the year to support energy prices.
In contrast, imports from Saudi Arabia, China’s previous largest supplier, decreased by 29.3% compared to the same period last year, totaling 6.3 million tons in March, or 1.48 million bpd. Meanwhile, imports from Malaysia, a trans-shipment point for sanctioned cargoes from Iran and Venezuela, surged by 39.2% on the year to 13.7 million tons, or 3.23 million bpd.
The data also revealed a rare shipment of Venezuelan crude in February, following a temporary relaxation of U.S. sanctions on Caracas, with imports from Venezuela recorded at 375,296 tons. Notably, there were no recorded imports from Iran, as sanctions were re-imposed following the U.S.’s assessment of President Nicolas Maduro’s election commitments.