Top Suppliers of Crude Oil to China (2023)
China has played a significant role in the global economy and energy market, contributing to 28% of global economic growth and accounting for around half of the world's increased energy consumption from 1990 to 2022.
Despite declines in crude oil imports by most advanced economies, notably the United States and Japan, over the past two decades, China has remained the primary driver of global crude oil trade growth. According to data from OPEC and China's customs, China's crude oil imports experienced a remarkable surge, rising from 1.4 million barrels per day (bpd) in 2000 to 11.3 million bpd in 2023. As the world's largest importer of crude oil, China held a substantial 23% share of global imports in 2022.
China remains heavily reliant on energy imports, with a notable emphasis on crude oil. Meanwhile, as the fifth-largest global producer, China produced 4.1 million bpd of crude oil in 2022. In 2023, China's imports of mineral fuels and products reached a substantial value of $516 billion, with a significant portion of $337 billion spent solely on crude oil. This was followed by $85 billion on natural gas, $55 billion on coal, and $39 billion on oil products. Crude oil was the most important commodity contributing to China's trade deficit, amounting to $337 billion in 2023 and accounting for 74% of the total mineral fuels and products trade deficit.
Russia and Saudi Arabia are key suppliers of crude oil to China, with exports of 2.15 million bpd and 1.73 million bpd, respectively, in 2023. Russia surpassed Saudi Arabia as the most important traditional exporter of crude oil to China. Iraq and Malaysia were the third and fourth largest crude oil exporters to China in 2023, with exports of 1.19 million bpd and 1.10 million bpd, respectively.
China's crude oil imports volume increased by 11.0% in 2023 compared to 2022, despite a 7.7% decrease in value due to declining oil prices. In 2023, crude oil exports to China increased for Brazil, Iraq, Malaysia, Russia, and the United States, while exports from GCC (Gulf Cooperation Council) countries decreased. Specifically, crude oil exports to China increased by 81% for the United States, 54% for Malaysia, 51% for Brazil, and 26% for Russia compared to the previous year.
Malaysia does not hold a significant position as a producer or exporter of crude oil, with its oil production reaching 567 thousand bpd in 2022. According to data from the Malaysia Department of Statistics, crude oil exports from Malaysia totaled approximately 220 thousand bpd in 2023, with less than 5 thousand bpd destined for China. This suggests that China may have utilized Malaysia as an intermediary to obscure the true origins of its crude oil imports, which likely included countries such as Iran and possibly Venezuela.
According to Eurostat data, crude oil imports to the European Union from Russia plummeted from 3.4 million bpd in 2021 to around half a million bpd in 2023, reflecting the imposition of sanctions against Russia following the conflict in Ukraine. As a consequence of oil sanctions, China experienced the benefit of acquiring cheaper crude oil from Russia and Iran. China's customs data for 2023 indicates that while the average import price of crude oil from GCC countries stood at $86 per barrel, the average import prices from Russia and Malaysia (likely Iran) were $76 and $70 per barrel, respectively.
GCC countries, including Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, exported 4.06 million bpd of crude oil to China in 2023, accounting for 36% of China’s total crude oil imports. When including Iraq and Iran, the Persian Gulf region supplied more than half of China’s crude oil imports. The Persian Gulf region and Russia together supplied nearly three-fourths of China’s crude oil imports. Furthermore, China emerged as the main trading partner for both Russia and the Persian Gulf countries, with a total trade value of around $620 billion in 2023, just 7% less than that with the United States, which totaled $668 billion.