Rising crude imports from Russia into Asia’s top importers China and India are estimated to push total Asian oil imports to a 10-month high in March, according to LSEG Oil Research data reported by the Reuters columnist Clyde Russell.
This month, increased arrivals of Russian crude into Asia’s key importing markets are expected to lift Asian crude imports to 27.48 million barrels per day (bpd), the highest level in 10 months. Estimated import volumes in March would be higher than the 26.70 million bpd imported from Asia in February and the 27.18 million bpd that arrived in January this year, according to data from LSEG Oil Research.
The higher arrivals would also be the result of oil prices below $80 per barrel when cargoes were defined and purchased, mhe recent rise in oil prices above $85 a barrel Brent could slow imports to China and India, and other Asian importers, in the coming months, Reuters notes.
Earlier on Thursday, Brent crude was trading above $87 a barrel, as prices were set to post a strong quarterly gain in the first quarter. WTI prices have risen 14% since the beginning of the year, surpassing $82 a barrel earlier this week. Brent crude has risen from around $78 a barrel at the start of the year to over $87 a barrel this week.
While rising oil prices could mean a slowdown in imports to Asia in April and May, March imports are set to be the strongest for the continent in 10 months, led by a jump in Chinese imports.
Stuck cargoes of Russian Sokol crude, previously bound for India but stuck off South Korea and Singapore since the US stepped up enforcement of sanctions, have started heading towards China, starting to clear a backlog of over 10 million barrels of this type of crude stuck on oil tankers at sea.
The world’s top oil importer is expected to import up to 11.75 million bpd of crude in March, up from 11.16 million bpd in February and 10.44 million bpd in January, according to data compiled by LSEG Oil Research.
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