China's crude oil imports in October 2023 reached 41.94 million tons, equivalent to 9.88 million barrels per day. This is the highest level of crude oil imports for the country since March 2026. Despite this growth, China's crude oil imports have decreased by 13.3% compared to the same period last year.
Import Growth and Existing Challenges
Customs data shows that China, as the world's largest oil buyer, despite the increase in import levels compared to September, still faces challenges in securing crude oil. In particular, the U.S. and Israeli regime's war against Iran has had negative impacts on imports, leading to a 13.3% decrease compared to last year.
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In the first 10 months of 2023, China's total crude oil imports reached 399.9 million tons, showing a 15.1% decrease compared to the same period last year. This reflects the fluctuations in the global oil market and the impact of political conditions on China's energy supply.
Increase in Refinery Capacity and Oil Storage
According to reports from Kpler, China's crude oil imports by sea in October increased by 12% compared to September, reaching approximately 9.2 million barrels per day. This increase is due to refineries' need for oil product storage and uncertainties regarding China's export plans.
Energy Aspects has estimated that the production capacity of China's refineries decreased in October compared to September, reaching 13.75 million barrels per day. This reduction in capacity is not due to uncertainties about the country's export policies and the refineries' desire to increase production.
It is expected that refinery production will remain close to current levels until the end of 2026, as refineries need to increase oil product storage. Additionally, Kpler forecasts that China's maritime crude oil imports will slightly increase in November and December compared to October, which will help with the modest growth of the country's crude oil storage.
In October, Kpler and Vortexa estimated the withdrawal of 7 million and 12 million barrels of crude oil from China's onshore storage, respectively. This is while their estimates for withdrawals from storage in September were 47 million and 57 million barrels, respectively.
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