China Reshapes Oil Import Sources: Russia Gains as Middle East Shipments Decline

China's crude oil imports from Russia recorded a significant increase last July, reaffirming Moscow's position as China's largest crude oil supplier. These imports reached 9.15 million tons, equivalent to 2.16 million barrels per day, marking a 5% year-on-year rise and a 10% increase compared to the previous June. In contrast, imports from Malaysia, a key hub for transshipping sanctioned Iranian oil, saw a 64.3% year-on-year decline, falling to 1.51 million tons in July, or 350,000 barrels per day. Imports from Indonesia, however, reached 3.15 million tons, equivalent to 740,000 barrels per day in July, an increase of 51.8% year-on-year. While crude oil imports from Indonesia were relatively low in previous periods, they exceeded two million tons monthly in July. Reports suggest that this surge might be linked to a mechanism for concealing sanctioned Iranian crude oil shipments, which are transferred from one tanker to another off the coast of Malaysia. Furthermore, imports from Iraq sharply decreased by 98% compared to last year, settling at 0.1 million tons. In another development, China completely halted its imports from Oman last July. On the other hand, imports from Brazil increased by 31.9% year-on-year, reaching 4.98 million tons, or 1.17 million barrels per day in July. Customs data did not record any crude oil imports from the United States, Venezuela, or Iran during the same month.