Chinese refiners rush to buy Middle East crude as stocks fall, Kpler says

Chinese refiners are rapidly increasing their purchases of Middle Eastern crude oil, driven by falling stockpiles and a surge in refinery activity, according to analytics firm Kpler. Since mid-September, Chinese buyers have secured at least 80 million barrels of Saudi crude, Kpler reported on the social media platform X. During September, China's onshore crude inventories plummeted by an average of 1.6 million barrels per day, marking the sharpest decline ever recorded.

Refinery throughput is expected to hit 14.2 million barrels per day by December, further intensifying the need for refiners to replenish their stocks. Simultaneously, Chinese refiners must replace around 1 million barrels per day of Iranian crude, as the US embargo remains in effect. The heightened demand from China may help prevent further declines in Dubai crude prices, especially as ongoing regional tensions pose a threat to supply routes.