Malaysia Regains Position as China's Second-Largest Crude Oil Supplier

(Reuters) — Malaysia regained its position as the second-largest supplier of crude oil to China last month, data showed on Wednesday, with supplies rising 28% on year as independent refiners sought cheaper sanctioned oil amid Middle East supply concerns.

The Southeast Asian country lost that spot to Saudi Arabia the previous month.

Imports from Malaysia, a major transshipment hub for sanctioned oil from Venezuela and mostly Iran, reached 7.51 million metric tons last month, or nearly 1.5 million barrels per day (bbl/d), General Administration of Chinese Customs data showed.

Narrowing Iranian oil discounts, however, may lead to lower imports in November and December, Reuters reported earlier.

Russia held its position as China's top oil supplier, with volumes - including supplies via pipelines and seaborne shipments - increasing 15% to 9.83 million tons, or 2.3 million bbl/d.

Both Malaysia and Russia defied a broader trend of declining Chinese crude oil imports, which dropped by 9% last month, marking the sixth consecutive month of year-on-year decline amid waning domestic fuel demand and refinery closures.

Year-to-date, imports from Russia rose 2% to 90.43 million tons, or 2.16 million bbl/d, making up 20% of China's total imports.

In contrast, imports from Saudi Arabia fell nearly 13% on the year at 5.79 million tons, or 1.36 million bbl/d, the data showed. Despite this decline, Saudi Arabia retained the second-largest supplier spot year-to-date with 65.31 million tons, although 11% lower than the same period in 2023.

Malaysia was the third-largest supplier for the 10-month period, recording a 23% year-on-year growth.

The customs data did not record any imports from Iran or Venezuela for October.

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