Asia is poised to import record volumes of crude oil this month as top importers boost purchases amid strong runs and a changing geopolitical situation.
Asia, the key oil-importing and demand growth region, is expected to import as many as 28.51 million barrels per day (bpd) of crude oil in February—a record high on a daily basis in data compiled by commodity analysts Kpler and cited by Reuters’ columnist Clyde Russell.
The February imports would be higher than 27.48 million bpd in December and 26.22 million bpd in January, per the data provided by Kpler.
Asia’s biggest crude oil importers, China and India, will drive the jump in February arrivals to a record high. China and India are also the largest and third-largest oil importers in the world, respectively.
While Asian imports are booming this month, China and India have started to starkly diverge in sourcing their crude supply.
China is boosting imports from both Russia and Saudi Arabia, as deep discounts for Russian oil and lower Saudi term prices are stoking the appetite of Chinese refiners.
India, on the other hand, is slashing Russian purchases amid U.S. pressure and is raising imports from the Middle East, West Africa, and the Americas.
China’s oil imports from Russia are on track for an all-time high of over 2 million barrels per day in February, as India is withdrawing from Russian spot purchases and supply is now heavily discounted for Chinese independent refiners.
China is set to import 2.07-2.08 million bpd of oil from Russia this month, according to data from Vortexa and Kpler cited by Reuters.
Moreover, near-term demand for Saudi Arabia’s oil in China is soaring after the Kingdom early this month slashed its official selling prices (OSPs) for Asia to the lowest level versus regional benchmarks in more than five years.
India is also boosting imports from Saudi Arabia as it seeks alternatives to Russian crude. Kpler estimates that India’s imports would hit 1.03 million bpd in February, up from 774,000 bpd in January and the highest volume since November 2019.