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

Register now to get free limitless entry to Reuters.com

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

SINGAPORE (Reuters) – China’s imports of crude oil from Russia jumped 55 p.c from a 12 months earlier to a report stage in Might, changing Saudi Arabia as the biggest provider, as refiners benefited from decreased provides amid sanctions in opposition to Moscow over its invasion. Ukraine.

Complete Russian oil imports, together with provides pumped via 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 information 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.

Register now to get free limitless entry to Reuters.com

The info, 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 on account of COVID-19 restrictions and a slowing economic system, main importers, together with refining big 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 scale back competing provides from West Africa and Brazil. Learn extra

Saudi Arabia got here in because the second largest provider, with Might 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 international locations. 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 Might 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 prevented 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, have been 2.2 million tons, flat in opposition to 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 info additionally confirmed that China’s imports of Russian LNG amounted to just about 400,000 tons final month, up 56% from Might 2021.

Within the first 5 months, Russian LNG imports — principally from the Sakhalin-2 challenge 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 information.

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

(tons = 7.3 barrels to transform crude oil)

Register now to get free limitless entry to Reuters.com

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

Our standards: Thomson Reuters Belief Rules.

.