Official customs data showed China’s imports of Saudi Arabian crude oil fell 19% year-on-year in June to 7.2 million tons (1.75 million bpd). Nevertheless, Saudi Arabia remained China’s largest oil supplier last month. Shipments from Russia were 6.65 million tons or 1.62 million bpd. Muted demand in China pushed spot premiums for the Russian ESPO grade to the lowest since April. China’s crude imports slowed in the second quarter of 2021 due to higher oil prices and lower refining margins. Meanwhile, its crude imports in the first half dropped for the first time since 2013.
The data also showed that China’s crude imports from the UAE and Kuwait fell 32% and 23% year-on-year in June, respectively. Market participants said Iran delivered record amounts of oil to China since late 2020. These barrels were disguised as oil from other nations, including the UAE. Imports from Malaysia doubled to 1.17 million tons last month ahead of a new tax on bitumen blend. Venezuela’s crude oil is often blended and rebranded as bitumen from Malaysia, market sources said. China’s official data recorded no arrivals of Iranian and Venezuelan crude grades.
