China’s oil imports from Russia may rise to a record high, overtaking Saudi Arabia’s largest oil supplier

Oil and gasoline tanks at an oil depot within the port of Zhuhai, China, October 22, 2018. (Reuters) / Ali Tune

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  • Russia overtakes Saudi Arabia as the biggest provider after a spot of 19 months
  • Russia imports almost two million barrels per day in Could
  • Imports from Malaysia doubled in Could
  • Customs proclaims the third Iranian cargo since final December

SINGAPORE (Reuters) – China’s imports of crude oil from Russia jumped 55 p.c from a yr earlier to a file stage in Could, changing Saudi Arabia as the biggest provider, as refiners benefited from lowered provides amid sanctions in opposition to Moscow over its invasion. Ukraine.

Whole Russian oil imports, together with provides pumped by the East Siberia-Pacific pipeline and seaborne shipments from Russia’s ports in Europe and the Far East, amounted to just about 8.42 million tons, in line with knowledge from China’s Normal Administration of Customs.

That equates to about 1.98 million bpd and up 1 / 4 from 1.59 million bpd in April.

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The information, which exhibits that Russia has realigned main suppliers to the world’s largest importer of crude oil after a spot of 19 months, means that Moscow is ready to discover consumers for its oil regardless of Western sanctions, regardless of having to chop costs. .

As general demand for crude oil in China waned as a consequence of COVID-19 restrictions and a slowing economic system, main importers, together with refining large Sinopec and dealer Zhenhua Oil, ramped up purchases of cheaper Russian oil in addition to sanctioned provides from Iran and Venezuela that permit . them to cut back competing provides from West Africa and Brazil. Learn extra

Saudi Arabia got here in because the second largest provider, with Could volumes rising 9% year-on-year at 7.82 million tons, or 1.84 million barrels per day. That is down from 2.17 million barrels per day in April.

Customs knowledge launched on Monday additionally confirmed that China imported 260,000 tons of Iranian crude oil final month, within the third cargo of Iranian oil since final December, confirming a Reuters report earlier.

Regardless of US sanctions on Iran, China has continued to acquire Iranian oil, which is normally handed on as provides from different nations. Import ranges are roughly equal to 7% of China’s complete crude oil imports. Learn extra

China’s complete imports of crude oil rose about 12 p.c in Could from a low base a yr earlier to 10.8 million barrels per day, in comparison with the 2021 common of 10.3 million barrels per day. Learn extra

Customs reported no imports from Venezuela. State oil firms have prevented purchases since late 2019 for concern of secondary US sanctions.

Imports from Malaysia, typically used as a switch level prior to now two years for oil from Iran and Venezuela, had been 2.2 million tons, flat in opposition to April however greater than double the extent of the earlier yr.

Imports from Brazil fell 19% from the earlier yr to 2.2 million tons, as provides from the Latin American supply confronted cheaper competitors from Iranian and Russian barrels.

Individually, the info additionally confirmed that China’s imports of Russian LNG amounted to just about 400,000 tons final month, up 56% from Could 2021.

Within the first 5 months, Russian LNG imports — largely from the Sakhalin-2 undertaking within the Far East and Yamal LNG within the Russian Arctic — rose 22% year-on-year to 1.84 million tons, in line with customs knowledge.

Under is an in depth breakdown of oil imports, in portions in million tons:

(tons = 7.3 barrels to transform crude oil)

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(Reporting by the Chin Aizhou and Beijing editorial room. Enhancing by Tom Hogg and Muralikumar Anantharaman

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