Key facts
- Asia's crude oil imports in June are projected at 20.71 million barrels per day, below pre-conflict averages.
- China's crude imports decreased to 5.8 million bpd in June from 6.8 million bpd in May.
- Concerns over the Strait of Hormuz and high freight costs have reduced Middle Eastern crude purchases.
- Asian refiners have secured enough non-Middle Eastern crude for July and August, reducing immediate needs.
Asia's crude oil imports are expected to remain below pre-conflict levels in June, despite a slight recovery from May's figures. According to estimates by Reuters columnist Clyde Russell, citing Kpler data, June imports are projected at 20.71 million barrels per day (bpd), a significant decrease from the 26.79 million bpd average seen in the three months prior to the Iran war's start on February 28.
China, the world's largest crude importer, saw its imports fall to 5.8 million bpd in June from 6.8 million bpd in May. This suggests China was not rushing to buy high-priced crude that arrived in June. The country maintained a substantial cushion of over 1.2 billion barrels in commercial and strategic stocks, allowing it to reduce spot purchases and avoid panic buying at elevated prices.
Asian refiners have also reduced their spot purchases of Middle Eastern crude for July and August loadings. This follows an earlier buying spree of UAE, Saudi, and Iraqi crude. Lingering uncertainties regarding the navigability of the Strait of Hormuz and elevated freight costs have tempered demand for Middle Eastern supplies. Refiners have largely secured sufficient non-Middle Eastern crude for July and August arrivals, diminishing the immediate necessity for spot purchases from the Middle East.