Russia Is Now China’s Top Supplier of Oil

China’s crude imports of oil from Russia rose to a record-breaking 55% from 2021 to May 2022. This new record officially overtakes Saudi Arabia as the number one supplier of oil in China. Refiners are noted to have taken advantage of the marked-down supplies in the ongoing international sanctions on Russia from the war with Ukraine. 

Based on data from the Chinese General Administration of Customs, an estimated total of 8.42 million tons of Russian oil were pumped through the East Siberia Pacific Ocean pipeline and brought in through sea shipments from European and Far Eastern ports of Russia. 

This figure would be equal to around 1.98 million barrels per day (BPD). This number shows an increase from April’s figures at 1.59 million BPD. 

After a 19-month gap, data shows that even after being slapped with international sanctions, Russia can still find buyers for its oil. Even if Russia had to mark down its prices to entice buyers, it still became the number one oil supplier to China, which is the world’s largest importer of crude oil. 

Leading importers and traders, namely, Sinopec and Zhenhua Oil, are buying lower-priced Russian oil and sanction supplies coming from Venezuela and Iran which would give them leeway to decrease competing supplies from Brazil and West Africa. 

China’s oil imports averaged 10.3 million BPD for the year 2021. In May of this year, their figures were noted to be at 10.8 million BPD. This indicated an almost 12% increase from a lower base last year.

Saudi Arabia follows Russia and is the second-largest supplier of crude oil to China with its May figures up 9% at 7.82 million tons or around 1.84 million BPD. However, this figure is lower than April’s data which noted their imports to be at 2.17 million BPD during that month. 

Source: Inquirer