Malaysia Reclaims Its Position SINGAPORE:
Data released on Wednesday shows that Malaysia has once again secured its spot as China’s second-largest crude oil supplier, with imports rising by 28% compared to last year. Independent Chinese refiners have increasingly turned to Malaysia for cheaper sanctioned oil, amidst growing concerns over Middle East supply disruptions.
Record Oil Imports from Malaysia
Last month, Malaysia exported 7.51 million metric tons, or nearly 1.5 million barrels per day (bpd), to China. This marked a significant rebound after Saudi Arabia had briefly taken the spot in September. Malaysia is a key transshipment hub, especially for oil from sanctioned nations such as Venezuela and Iran.
Concerns About Future Imports
However, the narrowing discounts on Iranian oil could mean that Malaysia’s export growth may not continue at the same pace into November and December. Meanwhile, Russia maintained its position as the top oil supplier to China, with a 15% increase in supply, totaling 9.83 million tons.
Trends in Chinese Oil Imports
In the broader picture, China’s crude oil imports fell by 9% last month, a continuation of the downward trend that has seen imports decline for six consecutive months. Saudi Arabia’s exports to China also dropped 13% compared to last year.