Malaysia Beats Saudi Arabia in China Oil Imports
With a 28% rise in imports, Malaysia reclaims its position as China’s second-largest crude oil supplier after losing it last month.
Malaysia’s Reclaimed Position SINGAPORE:
Malaysia’s crude oil exports to China surged by 28% last month, reclaiming the title of the second-largest supplier of crude oil to China, following a brief period where Saudi Arabia took the lead. This rise in exports comes as independent Chinese refineries sought cheaper oil from sanctioned sources due to concerns over Middle East supply disruptions.
Statistics of Malaysia’s Crude Exports
According to Chinese Customs data, imports from Malaysia reached 7.51 million metric tons, equivalent to almost 1.5 million barrels per day (bpd) in October. Malaysia’s role as a key transshipment hub for oil from Venezuela and Iran has helped it regain its place as a top supplier to China.
Looking Ahead: Iranian Oil Discount Challenges
While this surge is notable, narrowing Iranian oil discounts could mean that Malaysia’s export growth may not continue at the same pace. On the other hand, Russia remained China’s largest oil supplier, with exports increasing 15% to 9.83 million tons.
Decline in Overall Chinese Oil Imports
Despite a general decline in Chinese crude oil imports, which fell 9% last month, both Russia and Malaysia experienced growth. Saudi Arabia saw a 13% year-on-year drop in exports to China, though it still holds second place in overall imports for 2024.
