An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023.
March 2025 saw the highest imports since August 2023, driven by the availability of discounted crude from Russia and Iran. Kpler data indicates China’s seaborne imports from Russia reached 1.38 million bpd in April and 1.22 million bpd in March, the strongest figures since October 2024’s 1.51 million bpd. Imports from Iran, however, dropped to 743,000 bpd in April from 1.39 million bpd in March, the latter being the highest since October 2024. This decline followed increased U.S. sanctions on Iranian oil, impacting smaller Chinese refiners like Shandong Shouguang Luqing Petrochemical and Shandong Shengxing Chemical, which faced challenges sourcing crude, as reported by Reuters.
Larger independent refiners also reduced Iranian oil purchases in April due to these sanctions, contributing to the import drop. Meanwhile, Russian crude imports rebounded after a low of 970,000 bpd in February 2025, the weakest in 26 months, as refiners adapted to U.S. sanctions imposed in January 2025. The resilience of Chinese refiners in navigating these restrictions highlights their ability to secure discounted oil supplies.
The rise in imports is largely directed toward commercial and strategic storage, as refiners capitalize on lower prices. In March 2025, China’s surplus crude reached 1.74 million bpd, the highest since June 2023, based on calculations from official data subtracting processed oil from total imports and domestic output. Vortexa analysts estimated an average inventory build of over 1.1 million bpd in the five weeks ending May 4, 2025, indicating continued storage activity in April.
With global crude prices facing pressure from increased OPEC+ supply and economic uncertainties, Chinese refiners may remain cautious. Historically, low prices have spurred higher imports for storage, but the current economic outlook could temper this trend, balancing inventory growth with market conditions.
