China’s crude oil imports decreased by 5% in January and February 2025 compared to the same period last year, as a result of stricter U.S. sanctions on vessels transporting Russian and Iranian oil, along with a ban imposed by a Chinese port. The General Administration of Customs reported that imports totaled 83.85 million metric tons, equating to approximately 10.38 million barrels per day (bpd), down from 10.74 million bpd during the same timeframe in 2024. The combined import statistics for January and February take into account the effects of the week-long Lunar New Year holiday, which occurred in late January this year. The decline in deliveries was particularly pronounced after the Shandong Port Group unexpectedly implemented a ban in early January, preventing sanctioned tankers from docking at its ports.
This province is crucial as it hosts many independent refiners, which primarily source oil from Russia and Iran. The ongoing restrictions at ports, coupled with rising freight rates due to U.S. sanctions reducing shipping availability, have pushed crude prices higher. Smaller independent refiners in China were already facing tight or negative profit margins and found costs inflating even further. Some newer terminals, including privately owned ones outside Shandong, began to allow sanctioned tankers to dock, but their volumes remained limited.
Nevertheless, traders anticipate a rebound in China’s crude oil imports in March and April as higher freight charges draw more non-sanctioned vessels to transport Russian and Iranian oil, and refiners increase purchases of alternative grades. Additionally, customs data revealed an 18% decline in exports of refined oil products during this period, totaling 7.21 million tons. Natural gas imports also fell, dropping by 7.7% year-on-year to 20.31 million tons.