China Crude Imports Still Lag Pre-Conflict Levels Amid Ongoing Price Volatility
China's seaborne crude oil imports increased in August to 7.14 million barrels per day, but remain nearly 40% below pre-Iran conflict levels.
The country is shouldering most of the adjustment due to lower volumes from the Middle East, following the US and Israeli attack on Iran on February 28.
Asia's seaborne crude oil imports dropped by 16% in August compared to the three months leading up to the conflict, with China being responsible for a large portion of this decline.
Despite expectations that Beijing would cut its imports due to higher prices caused by the Iran conflict, the extent of the drop is surprising.
The loss of Iranian crude forces smaller independent refiners in China to pay more or reduce processing rates, while bigger players are buying more from Russia, competing with India for cargoes.