Russia has overtaken Saudi Arabia as China’s top importer of crude oil as its once-largest importer, the European Union, continues to shy away from Russian oil because of the war in Ukraine.
Last month, China imported nearly 2 million barrels a day (bpd) – a 55% increase from May 2021 and an almost 20% increase from April, according to the latest statistics from China’s General Administration of Customs.
ARCHIVE: Oil and gas tanks are seen in an oil depot in a port in Zhuhai, China, October 22, 2018. (Reuters / Aly Song / Reuters Photos)
By comparison, crude oil imports from China in May averaged about 1.84 million bpd – up just 9% from May 2021, but down from 2.17 million bpd in April, according to figures reports Reuters.
The last time Russia was China’s top crude oil supplier was in late 2020, according to estimates. Russia is increasingly selling its stagnant oil in Asia as Western buyers withdraw from it amid ongoing war in Ukraine and refineries redeem discounted supplies amid sanctions on Moscow.
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Earlier this year – before Russian tanks entered Ukraine – about 75% of Russia’s oil exports went to Europe, according to Alexander Dyukov, chief executive of Gazprom Neft.
Analysts say, however, that Russia still has a long way to go before its imports into Asia can reach the 4 million bpd of oil it sent to Europe before the war in Ukraine.
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Total crude demand in China has been mitigated by COVID-19 constraints and economic stagnation. Refinery Sinopec and trader ZhenHua Oil are buying increasingly cheaper Russian oil in addition to imposing sanctions on supplies from Iran and Venezuela, allowing them to restrict competing supplies from West Africa and Brazil.
