China’s crude oil imports not affected by Hormuz disruptions

Delayed impact of disruptions points to tighter crude supply for China in the coming months

China’s crude oil imports in March were not affected by the ongoing conflict with Iran, although supply disruptions from the Middle East are expected to weigh on imports in April, official data showed.

According to data from the General Administration of Customs of the People's Republic of China, China’s oil imports reached 49.98 million metric tons, or 11.77 million barrels per day, in March, marking a 2.8% year-on-year (YoY) decline.

Seaborne crude imports remained steady at 10.5 million barrels per day on an annual basis, while inventories rose by 34 million barrels.

Emma Li, an analyst at Vortexa, said Middle Eastern cargoes were loaded in January and February, therefore March imports were not yet impacted by disruptions in Hormuz Strait, Reuters reported.

However, China is likely to face a shortfall in crude supply in April. Lin Ye, Vice President at Rystad Energy, expected imports to come in around two million barrels per day below average domestic demand.

OilChem said in a report that major Chinese state-owned and independent refiners reduced operating rates in March, partly due to risks related to crude supply.