China’s oil demand dips, ticks down as economic ebb eases fuel imports

China has reduced its oil imports in recent months, as lower economic activity and green energy adoption have depressed demand

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China has decreased its oil imports in recent months, a change brought on by a slowing economy and greater use of green energy. Photo: Getty Images

Published: 9:00am, 16 Aug 2024

China has reduced oil imports from Russia in recent months, part of an overall softening of fossil fuel purchases as the country – one of the world’s largest petroleum consumers – grapples with an economic slowdown and increases the share of cleaner fuels in its energy mix, according to recent customs data.

The downward trend has been substantial enough to prompt the world’s major agencies to lower their forecasts for global oil demand.

China has cut its crude oil purchases from Russia by 14.1 per cent in terms of volume in May and June, year on year, greater than the 9.7 per cent decline in its total crude oil imports during the same period.

It also cut crude oil imports from Saudi Arabia, its second-biggest supplier, by 6.5 per cent over the two months.

For July’s overall crude imports, China reported a 3 per cent drop to 42.3 million tonnes, the figure’s lowest level since September 2022. Country-specific trade data for the month has not yet been released.

“[The general drop] stems from weak construction and manufacturing activity during the period, and is also mirrored in similarly weak demand growth for other commodities,” said Matthew Sherwood, lead commodities analyst at the Economist Intelligence Unit.