China's Oil Imports to Rebound Amid War-Related Disruptions
China's oil imports are set to rebound in the final quarter of the year after declining due to disruptions caused by the war. According to Bloomberg, citing energy consultancies, crude oil imports into China will rise by about 1.2 million barrels per day from the current quarter.
The increase is expected to bring oil purchases back towards 10 million barrels daily, although they may not reach that number until the end of the year. Fourth-quarter import rates could reach 9.9 million barrels daily, which would be lower than last year's peaks of between 12 and 13 million barrels daily.
The main reason for the increase is that Chinese refiners are looking for alternative sources to meet their demand for medium sour crude oil. Most Chinese refineries require this type of oil, but export flows from the Middle East have been severely disrupted by the war.
As a result, Chinese buyers are turning to Africa and South America to find new supplies. Additionally, China is replacing Iranian barrels frozen by the U.S. naval blockade with Russian barrels. According to Kpler data, China is on track to import Russian crude at a rate of 1.25 million barrels daily.