China’s March crude oil imports unscathed by Iran war, gas imports hit a multi-year low

BEIJING: China’s March crude oil imports fell 2.8% from a year earlier due to a high base, official data showed on Tuesday, while the Iran war curbed refinery runs with Middle East supply disruptions expected to weigh on April imports.

Imports in March were 49.98 million metric tons, or about 11.77 million barrels per day (bpd), the General Administration of Customs said.

China’s March seaborne crude imports were steady at 10.5 million bpd year-on-year, while inventories rose by 34 million barrels.

Middle East cargoes were loaded in January and February so March imports were not yet affected by Strait of Hormuz disruptions, said Emma Li, analyst at ship-tracking firm Vortexa.

Chinese refineries’ capacity utilisation rate was 68.79% in March, down 0.9 percentage points year-on-year, and down 4.47 percentage points from February, according to Chinese consultancy Oilchem.

Major refiners and independent refiners both lowered operating rates during the month due to factors including crude supply risks, the firm added in a report.

China is likely to face tighter crude supply in April, with imports expected to be about 2 million bpd below its average demand from imports, said Ye Lin, vice president at Rystad Energy.

If refiners are to maintain adequate oil product supply, China will probably need to draw on inventories, even with refinery runs expected to fall by about 1 million bpd in April amid weak margins, Ye added.

Customs data also showed that exports of refined oil products, including diesel, gasoline, aviation fuel and marine fuel, dropped 12.2% to 4.6 million tons in March.

China ordered a ban on refined fuel exports last month that halted cargoes that had yet to clear customs as of March 11.

The export ban, which does not include jet fuel for aviation bunkering, is poised to extend into April, though exemptions could be applied to small volumes bound for countries in the region that have requested help.

Major refineries raised gasoline and diesel yields in March, after export plans for gasoline and diesel were cut, and China’s gasoline and diesel consumption remained relatively low, leaving supply ample and domestic inventories higher, Oilchem added.

Natural gas imports in March, including piped gas and liquefied natural gas, were down 10.7% from a year earlier to 8.18 million tons, the lowest since October 2022.

The world’s biggest LNG importer reloaded 8 to 10 cargoes in March, its highest monthly total on record, cashing in on soaring spot prices as China’s supply of domestic and pipeline gas was sufficient to meet weaker demand.

Kpler data showed China’s March imports at 3.68 million tons, the lowest monthly level since April 2018.