Asian Oil Imports Dipped in 2024

January 6, 2025 by admin

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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By Irina Slav – Jan 06, 2025, 2:30 AM CST

Crude oil imports into Asia dipped by a modest 1.4% last year, driven by China, in the region’s first annual decline in imports since the pandemic lockdowns.

The daily average for 2024 stood at 26.51 million barrels daily, Reuters’ Clyde Russell reported earlier today, citing data from LSEG Oil Research. That compared to 26.88 million barrels daily in 2023.

Based on estimated oil flows to China, LSEG Oil Research also said Chinese oil imports shed 210,000 barrels daily on average last year, or 1.9% on the previous year.

This is not a particularly notable decline but since any decline in Chinese oil imports regardless of size is considered pretty much devastating for the oil market, chances are that this piece of news would affect prices as well.

The usual factors were cited in the report, including China’s EV adoption rates, the switch from diesel to LNG for trucks, and slower economic growth than in the previous two years. However, it has recently emerged that Chinese car buyers are increasingly opting for hybrids rather than battery electric cars, which suggests there could still be a reversal in oil demand trends this year.

India, meanwhile, is about to surpass China as the largest driver of global oil demand this year, according to forecasts. The subcontinent’s demand growth this year is seen gaining 3.2% from 2023, compared to a projected 1.7% demand growth rate for China, according to S&P Global Commodity Insights.

For 2024, LSEG Oil Research sees Indian oil demand growth at a healthy 2.3%, or a bit over 100,000 barrels daily. The country has been building out its refining capacity, which is seen as the fundamental reason for its demand growth outlook. Reuters’ Russell notes that a lot of the additional oil derivative output would be exported, effectively not reflecting home demand for oil products in India.

By Irina Slav for Oilprice.com