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 Music

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  • Russia overtakes Saudi Arabia as the most important provider after a niche of 19 months
  • Russia imports practically 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 % from a 12 months earlier to a file stage in Could, changing Saudi Arabia as the most important provider, as refiners benefited from diminished provides amid sanctions towards Moscow over its invasion. Ukraine.

Complete 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 almost 8.42 million tons, in accordance with information from China’s Common 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 info, which reveals that Russia has realigned main suppliers to the world’s largest importer of crude oil after a niche of 19 months, means that Moscow is ready to discover patrons for its oil regardless of Western sanctions, regardless of having to chop costs. .

As total demand for crude oil in China waned resulting from COVID-19 restrictions and a slowing financial 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 enable . 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 information 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 often 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 % in Could from a low base a 12 months 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 corporations have averted purchases since late 2019 for concern of secondary US sanctions.

Imports from Malaysia, usually used as a switch level up to now two years for oil from Iran and Venezuela, had been 2.2 million tons, flat towards April however greater than double the extent of the earlier 12 months.

Imports from Brazil fell 19% from the earlier 12 months to 2.2 million tons, as provides from the Latin American supply confronted cheaper competitors from Iranian and Russian barrels.

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

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

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. Modifying by Tom Hogg and Muralikumar Anantharaman

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