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Ji Siqi

China’s imports of crude oil from its biggest suppliers, including Russia, climbed in August, despite subdued demand overall due to Beijing’s hardline zero-Covid policy.
Chinese imports of Russian oil – via both sea cargo and pipelines – rose 16.75 per cent from July, reaching 8.34 million tonnes last month, a jump of 27.8 per cent from the same period a year ago, the latest breakdown of data from Chinese customs showed.
The value of Russian crude imports also increased by 55 per cent in August from a year earlier.
Oil imports from Saudi Arabia recovered last month to reach 8.48 million tonnes, a rise of 5 per cent from the same time last year.
China is careful about making sure that it doesn’t become too dependent on Russia
Michal Meidan
The Middle Eastern country has long been China’s biggest crude supplier, but its monthly flows were surpassed by Russia between May and July.
Independent refineries in China have been snapping up discounted Russian commodities, which are being shunned by Western buyers following its invasion of Ukraine.
Oil flows from Iraq – China’s third largest supplier – also picked up in August, totalling 4.32 million tonnes, customs data showed.
“China is careful about making sure that it doesn’t become too dependent on Russia, or that it doesn’t undermine existing relationships with other sellers,” said Michal Meidan, director of the China Energy Programme at the Oxford Institute for Energy Studies.
“I do think that China will be a bit cautious about increasing [buying from Russia]. I think there is a limited capacity, because of contractual issues, and because of sanctions and secondary sanction concerns,” she said.


China’s monthly imports of Russian coal – including lignite, or brown coal – also reached a record high for two months in a row, totalling 7.85 million tonnes in August.
The country has stepped up its thermal power generation in recent months because of a severe power shortage along the Yangtze River Basin caused by a lack of rainfall that has lowered water levels in hydropower reserves.
Overall, however, China’s demand for imported fuel has been subdued this year, as the economy slows and Beijing clings to its zero-Covid policy that has locked down swathes of the country and suppressed interprovincial travel.
In August, China imported 40.35 million tonnes of crude oil, a 9.4 per cent decline year on year. Crude oil imports between January-August also declined by 4.7 per cent from a year earlier.
Why is China facing a power crisis, and what does it mean for the economy?
China’s crude imports reached a record high of 542.39 million tonnes in 2020, after which volumes began to decrease and reversed the long-term trend of continuous growth.
This year’s decline in crude imports is mainly due to a dwindling demand for refined oil production, which includes diesel, petrol and aviation kerosene, according to Jiang Fei, an analyst with Great Wall Securities.
China has also stepped up domestic crude oil production, which has caused demand for imports to decline, Jiang said in a report earlier this month.
From January to August, China’s domestic crude output reached 136.94 million tonnes, increasing 3.2 per cent from a year earlier, according to the National Bureau of Statistics.


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China energy security

China’s crude oil imports from Russia, Saudi Arabia rise, but zero-Covid chokes overall demand

China’s demand for imported fuel has been subdued this year, as the economy slows and Beijing clings to its zero-Covid policy. Photo: AP

Oil storage tanks on the outskirts of Ningbo in China’s Zhejiang province. Photo: Bloomberg

China manufacturing: slowing export momentum, zero-Covid spell trouble for migrant workers

China’s manufacturers cut jobs for the fifth straight month to reduce costs in August. Photo: AFP

China’s manufacturers cut jobs for the fifth straight month to reduce costs in August. Photo: Xinhua

Labor recruitment agencies, stores and restaurants are closing in Dongguan as well. Photo: He Huifeng

Why China’s food security is being threatened by nutrient loss

Processing is leading to the loss of nutrients in China’s food supply system, experts say. Photo: Xinhua


Workers on a production line at a fish processing factory in Liaoning province. Photo: Xinhua

Workers clean and sort vegetables in Shufu county in northwest China’s Xinjiang Uygur Autonomous. Photo: Xinhua

China’s youth jobless rate remains stubbornly high, despite slight improvement in August

Beijing is pulling out all the stops to stabilise the job market, but China’s youth unemployment remains stubbornly high. Photo: Getty Images

Beijing is pulling out all the stops to stabilise the job market, but China’s youth unemployment remains stubbornly high. Photo: Xinhua

Chinese imports of Russian oil and coal continue upward trend in July

China’s appetite for foreign energy has been weak amid lower demand at home, but discounted Russian commodities have been an exception. Photo: Bloomberg

China to boost coal use as drought-fuelled power shortages trigger electricity rationing, factory closures

Parts of southern China have been gripped by record temperatures and drought in recent months. Photo: Reuters

Parts of southern China have been gripped by record temperatures and drought in recent months. Photo: Bloomberg

Economy


China’s demand for imported fuel has been subdued as the economy slows and Beijing clings to its zero-Covid policy
But imports of Russian oil have remained strong, climbing 27.8 per cent in August from the same period a year ago



China’s demand for imported fuel has been subdued this year as the economy slows, but imports of Russian oil have remained strong and purchases from Saudi Arabia recovered last month.


China’s crude oil imports from Russia, Saudi Arabia rise, but zero-Covid chokes overall demand

China’s demand for imported fuel has been subdued as the economy slows and Beijing clings to its zero-Covid policy But imports of Russian oil have remained strong, climbing 27.8 per cent in August from the same period a year ago

China’s demand for imported fuel has been subdued as the economy slows and Beijing clings to its zero-Covid policy

But imports of Russian oil have remained strong, climbing 27.8 per cent in August from the same period a year ago