Malaysia’s Surge in Oil Exports SINGAPORE:

Malaysia has regained its title as China’s second-largest crude oil supplier, with October imports increasing by 28% year-on-year. The surge in supply came as independent Chinese refineries sought cheaper oil options from countries like Venezuela and Iran, amid ongoing instability in the Middle East.

Details of Malaysia’s Exports to China

According to General Administration of Chinese Customs data, Malaysia’s exports to China reached 7.51 million metric tons, or about 1.5 million barrels per day (bpd), last month. This comes after Saudi Arabia briefly held the position in September. Malaysia continues to serve as a vital transshipment hub for sanctioned oil, particularly from Venezuela and Iran.

The Iranian Oil Discount Situation

While this surge is notable, experts caution that a reduction in Iranian oil discounts could impact future shipments. On the other hand, Russia maintained its position as China’s largest oil supplier, with shipments increasing 15% to 9.83 million tons.

Overall Trends in Chinese Oil Imports

Despite a broader decline in Chinese oil imports, which fell 9% in October, both Malaysia and Russia experienced growth. Year-to-date, imports from Russia have grown by 2%, while imports from Saudi Arabia have declined by nearly 13%.