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Asia Crude Imports Rebound Despite Record-Low Chinese Seaborne Purchases, Vortexa Says

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Crude and condensate arrivals into Asia and Oceania rose by 1 million barrels per day over the month to 18.6 million b/d in May, as stronger imports across the region offset a record drop in China's seaborne crude purchases, Ivan Mathews, a Vortexa analyst, said in a Tuesday note.

Chinese crude imports fell to an all-time low of 6.7 million b/d as refiners drew down domestic inventories and curtailed spot purchases amid elevated crude premiums.

Higher imports elsewhere in Asia, however, improved refinery feedstock availability and supported a recovery in regional refining activity.

The increase was driven largely by stronger inflows from the Wider Arabian Sea and the Americas. Saudi Arabia redirected exports through Red Sea terminals via the East-West pipeline, while crude shipments from the UAE's Fujairah export hub continued to rise.

India's seaborne crude imports also returned to pre-conflict levels, supported by record arrivals from Russia and Venezuela.

Refiners outside China and India increased purchases of Atlantic Basin crude to diversify supply and replace disrupted Middle Eastern volumes. US crude arrivals into the rest of Asia reached record highs in May.

Improved crude availability, together with stock releases in countries including South Korea and Japan, supported a rebound in refinery runs. Rising clean and dirty petroleum product tanker liftings since late May point to stronger refinery utilization and increased product output.

Higher refinery throughput has also eased regional product tightness. Narrowing East-West price spreads for naphtha, gasoline, diesel and low-sulfur fuel oil reduced incentives to ship products into the Pacific Basin.

As a result, Atlantic Basin-to-Pacific Basin product flows have retreated from record highs reached in March and are expected to decline further in June.

Despite the broader recovery, vulnerabilities remain. India's LPG imports, while improving in May, remain more than 50% below pre-conflict levels.

Alternative supplies from sources such as the US Gulf Coast have failed to fully replace lost Middle Eastern volumes.

The shortfall is expected to keep government measures in place that prioritize LPG production and limit propane and butane use in petrochemicals, supporting elevated naphtha imports.

While Asia's crude supply chain has largely adapted to disruptions, LPG markets remain exposed to ongoing supply constraints.

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