Malaysia Surges to Become China’s No. 2 Crude Oil Supplier After Russia

(Reuters) — China's crude oil imports from Malaysia surged 31% in August from a year earlier, making it the country's second-largest supplier after Russia, customs data showed, bucking a broader trend of slowing Chinese imports.

Chinese refiners have continued to snap up cheaper, sanctioned oil despite sluggish domestic fuel demand.

Imports from Malaysia, a major trans-shipment hub for sanctioned oil from Iran and Venezuela, amounted to 7.5 million metric tons in August, or 1.77 million barrels per day (bpd), data from the General Administration of Chinese Customs showed on Friday.

That compared with imports from Saudi Arabia - previously China's No.2 supplier - which tumbled more than one-third to 5.3 million tons, or 1.25 million bpd, as refiners cut nominations due to higher prices versus competing supplies.

Imports from top supplier Russia also declined, but by a more modest 11% last month and compared with a high base a year earlier.

Russian oil arrivals, which included shipments from pipelines and seaborne vessels, were 9.37 million metric tons last month, or 2.21 million barrels per day, the data showed.

That's down from 2.48 million bpd a year ago, but surged from 1.76 million bpd in July.

Year-to-date volumes from Russia rose 1.1% over the corresponding period of 2023, while those from Saudi Arabia shrank 13.4%, as refiners were lured by cheaper Russian supplies to counter narrowing processing profits.

Year-to-date, imports from Malaysia totaled 43.2 million tons, a rise of 22% on-year and trailing Saudi Arabia as the third-largest supplier.

No Iran or Venezuela shipments were recorded.

China's total crude oil imports last month recovered to a year-high but recorded a fourth year-on-year decline in a row due to weakening refining margins.

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