China’s Crude Oil Imports Hit Record in 2023

China’s Crude Oil Imports Hit Record in 2023

 China’s crude oil imports have recently reached an all-time high in 2023, according to data released by the General Administration of Customs.

The country imported 563.99 million metric tons of crude oil, equivalent to 11.28 million barrels per day (bbl/d), representing an 11% increase from the previous year. This surpasses the previous record of 10.81 million bbl/d set in 2020.

The surge in imports can be attributed to the recovery of fuel demand in China, despite the economic challenges brought on by the pandemic. In December alone, imports totaled 48.36 million tons, or 11.39 million bbl/d, up from November’s 10.33 million bbl/d.

One of the key drivers of this growth is the steady increase in domestic passenger transport levels. Following the country’s abrupt exit from pandemic restrictions in November 2022, China’s highway traffic for 2023 saw a 43.6% jump in passenger kilometers for the January to November period, according to data from the Ministry of Transport. Domestic air traffic also recovered rapidly, with a 27% increase in December compared to the previous year, reaching a new record. However, international travel is still lagging behind, with December flight volumes down 39% compared to the same month in 2019, before borders were closed.

On the other hand, domestic diesel demand was weaker due to a slowdown in the construction sector and an uncertain outlook for the manufacturing sector. Analysts predict that China’s oil demand growth will slow to around 4% in the first half of 2024, mainly due to the country’s property market woes. However, moderating growth in domestic output is expected to continue supporting import levels.

Looking ahead, the primary drivers for oil imports in 2024 are expected to be aviation demand for kerosene and demand in the petrochemical sector for high-end chemical products used in the manufacture of key goods such as solar panels and electric vehicles. The International Energy Agency forecasts a 13.3% growth in China’s demand for naphtha, a key feedstock for petrochemicals, through this year.

Besides crude oil, China’s natural gas imports also saw an increase in 2023, rising 9.9% to reach 119.97 million tons. This includes both liquefied natural gas (LNG) and piped gas. December saw a record monthly high of 12.65 million tons, up from November’s 10.95 million tons, driven by strong heating demand amid colder-than-usual weather. The growing pipeline gas supplies from Russia also played a role in bolstering imports.

On the other hand, China’s exports of refined fuel products, including diesel, aviation fuel, gasoline, and marine fuel, also saw an increase in 2023, reaching 62.69 million metric tons, up 16.7% from the previous year. However, December exports were the lowest since June, as companies ran short of export quotas.

 

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Doaa Ashraf 662 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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