Introduction: Reclaiming the Spot SINGAPORE:
According to data released on Wednesday, Malaysia has reclaimed its position as China’s second-largest crude oil supplier after a 28% rise in exports last month, driven by a surge in demand from independent Chinese refineries seeking cheaper sanctioned oil amidst Middle East supply disruptions.
Details of Malaysia’s Crude Exports
Last month, Malaysia’s crude oil exports to China reached 7.51 million metric tons, nearly 1.5 million barrels per day (bpd), data from the General Administration of Chinese Customs revealed. This marked a sharp rise from the previous year.
Impact of Iranian Oil Discounts
This rebound comes after the country lost its position to Saudi Arabia in September. However, despite these gains, analysts warn that narrowing Iranian oil discounts could potentially curb Malaysia’s exports in the final months of 2024.
Russia Remains China’s Top Supplier
Meanwhile, Russia continues to maintain its lead as China’s primary oil supplier. Russian crude exports increased by 15%, totaling 9.83 million metric tons, or 2.3 million bpd.
Decline in China’s Total Crude Oil Imports
Despite a wider decline in China’s overall crude oil imports, which fell by 9% last month, both Malaysia and Russia bucked this trend. Russia’s year-to-date imports have grown by 2%, while Saudi Arabia saw a 13% drop in year-to-date imports.
