Chinese imports of Russian oil rise by nearly one-quarter from the same period in 2022.
Published On 20 Mar 202320 Mar 2023
Russia overtook Saudi Arabia to be China’s top oil supplier in the first two months of 2023, according to Chinese government data, as buyers snapped up sanctioned Russian oil at steep discounts.
Arrivals from Russia totalled 15.68 million tonnes in January-February, or 1.94 million barrels per day (bpd), up 23.8 percent from 1.57 million bpd in the corresponding 2022 period, data from the General Administration of Customs showed on Monday.
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Russia was China’s second-largest crude supplier last year, shipping 86.2 million tonnes.
Imports of Saudi crude totalled 13.92 million tonnes in the two-month period, equivalent to 1.72 million bpd, down from 1.81 million bpd a year earlier.
Saudi Arabia was China’s top supplier in 2022, selling 87.49 million tonnes of crude during the year, equivalent to 1.75 million bpd.
Western sanctions and a price cap on seaborne Russian crude following Moscow’s invasion of Ukraine have limited the buyer pool for Russian supply, leading it to trade at deep discounts to international benchmarks.
Independent Chinese refiners, many of them based in Shandong province, have been among the main beneficiaries of this shift in pricing power.
February-arriving Russian ESPO crude at Shandong ports was bought in January at a discount of about $8 relative to the ICE Brent benchmark, though the pricing advantage has been somewhat eroded by the entry of private Indian refiners into the ESPO market.
However, with domestic fuel demand rising following the lifting of COVID-19 restrictions, state-owned Sinopec and PetroChina resumed their purchases of Russian Urals grade cargoes in February after a brief pause in late 2022, just before the European Union embargo on Russian oil started.
Chinese refiners use intermediary traders to handle shipping and insurance of Russian crude to avoid violating Western sanctions.
Customs data also showed that imports from Malaysia were 0.65 million bpd over the period, up 144.2 percent from the same period last year. Malaysia is often used as an intermediary point for sanctioned cargoes from Iran and Venezuela.
FAQs
The volume of Russian crude shipped to China jumped 24% in 2023 to 107.02 million metric tons, compared to 2022, according to data released by China's General Administration of Customs on Saturday. That helped Russia overtake Saudi Arabia as China's largest crude oil supplier for the year.
Did Russia surpass Saudi Arabia as China's top oil supplier? ›
Russia supplied 107 million tons of oil to China in 2023, the equivalent of 2.1 million barrels a day, the agency said. Saudi Arabia, China's top supplier for many years, delivered 86 million tons, a 2 percent drop compared with the previous year.
Is Russia set to overtake Saudi Arabia in battle for China's oil market? ›
Russia was the single largest crude oil supplier to China in January and February, overtaking Saudi Arabia which was the number-one supplier of oil to China last year, according to Chinese customs data cited by Reuters.
Is Russia China's top oil supplier? ›
Russia was China's top supplier throughout 2023, shipping 2.14 million bpd despite Western sanctions and a price cap following the Kremlin's 2022 invasion of Ukraine.
Who is China's largest supplier of oil? ›
Despite the Western sanctions on Russian oil, China's largest oil supplier in 2023 was Russia. A coastal port and oil storage unit in China. Credit: Ma Li/Getty Images.
Who buys the majority of Saudi oil? ›
In 2022, Saudi Arabia exported $236B in Crude Petroleum. The main destinations of Saudi Arabia exports on Crude Petroleum were China ($56.1B), Japan ($34.3B), India ($32.7B), South Korea ($32.5B), and United States ($16.6B).
Which country buys the most oil from Saudi Arabia? ›
The most common destination for the exports of Saudi Arabia are China ($68B), India ($46.2B), Japan ($36.5B), South Korea ($36B), and United States ($23.9B).
Does the US produce more oil than Saudi Arabia? ›
Average annual production in Saudi Arabia peaked in 2022 at 10.6 million b/d, which was 1.3 million b/d less than in the United States that year.
Does the US get most of its oil from Saudi Arabia? ›
Most of this imported crude oil comes from Canada with lesser amounts from Mexico and Saudi Arabia. So no, the US doesn't have to rely on Saudi oil. If you are referring to the US being energy independent, which is another term for “net energy exporter,” US energy producers achieved this in 2019, 2020 and 2021.
Has the US surpassed Saudi Arabia in oil production? ›
Over the last decade, the United States has established itself as the world's top producer of crude oil, surpassing Saudi Arabia and Russia. This infographic illustrates the rise of the U.S. as the biggest oil producer, based on data from the U.S. Energy Information Administration (EIA).
China Remains Russia's Top Fossil Fuel Importer.
Who receives most of Russia's oil? ›
Crude oil: China was the largest buyer (purchasing 47% of Russia's crude oil exports), followed by India (32%), the EU (7%) and Turkey (3%). EU imports of crude oil since 5 December 2022 arrived via sea to Bulgaria and via pipeline for the Czech Republic, Slovakia and Hungary.
Who does Russia sell the most oil to? ›
Russia was also top supplier of fuel oil to China last year, shipping 9.6 million tons. Malaysia being the next-biggest exporter, supplying 6.93 million tons.
Is Exxon Chinese owned? ›
ExxonMobil Corporation (/ˌɛksɒnˈmoʊbəl/ EKS-on-MOH-bəl; commonly shortened to Exxon) is an American multinational oil and gas corporation and the largest direct descendant of John D. Rockefeller's Standard Oil.
What oil company is owned by China? ›
China is home to many large oil and gas companies—most of which are state-owned. CNOOC, Shaanxi Yanchang, and Sinochem are also among the largest oil producers in China.
Who is the biggest oil customer in the world? ›
The U.S. is currently both the largest producer and the largest consumer of crude oil in the world, with highly populated countries like China and India following close behind.
Who produces more oil Russia or Saudi Arabia? ›
Crude oil production in Russia, which is the third-biggest producer after the U.S. and Saudi Arabia, is predicted to remain stable or possibly rise in 2024, according to analysts.
Does Saudi Arabia produce more oil than Russia? ›
In recent history, the top three producers have been the United States, Russia, and Saudi Arabia.
Is Russia the biggest supplier of oil? ›
Russia is the world's third largest oil producer behind the United States and Saudi Arabia.
Is Russia the world's second largest exporter of oil? ›
Oil is the leading export product in the world. Saudi Arabia is the world's largest oil exporter, followed by Russia and Canada.
