Language

Russia Becomes Largest Oil Exporter to China


Classification:

Time:2020-05-27

【Summary】According to a OILPRICE report on Tuesday (May 26), Russia became China's largest crude oil supplier last month, surpassing Saudi Arabia at an average rate of 1.75 million barrels per day, while Saudi Arabia was 1.26 million barrels per day. In fact, last month Saudi Arabia ranked third in terms of Chinese oil suppliers, with Iraq in second place.

According to a OILPRICE report on Tuesday (May 26), Russia became China's largest crude oil supplier last month, surpassing Saudi Arabia at an average rate of 1.75 million barrels per day, while Saudi Arabia was 1.26 million barrels per day. In fact, last month Saudi Arabia ranked third in terms of Chinese oil suppliers, with Iraq in second place.
In contrast, China imported 1.66 million barrels per day of Russian oil and 1.7 million barrels per day of Saudi oil in March. Saudi Arabia's oil supply to the world's largest importer (China) has fallen sharply compared with the monthly average. Meanwhile, China's imports of Russian crude oil in March rose 31 percent from a year earlier, and its imports from Russia in April rose 18 percent from a year earlier.
China, a key market for all crude oil exporters, has naturally become a battleground for the world's oil exporters, which is not entirely conducive to US oil imports given the growing tensions between China and the US.
Meanwhile, amid more positive oil price news, China's total oil imports in April were higher than in March, suggesting a steady recovery in oil demand. The average was 9.84 million bpd in April and 9.68 million bpd in March. However, the April figure was below the average for April 2019, which was 10.64 million bpd.
But analysts believe that Saudi Arabia's loss of market share to Russian oil is only temporary. Ship tracking company Vortexa said in an interview that Saudi Arabia's crude oil exports to China in May are likely to more than double from April, which was 41% lower than in March.
"It is clear that Saudi Arabia aims to increase its market share in the West during April. Saudi Arabia is now reducing production and shipments, but is expected to focus again on China," said the IHSMarkit's regional head of commodities."
According to the data of TankerTrackers.com in the first 21 days of May, the average oil export volume of Saudi Arabia to China is about 1.87 million barrels per day. (From Zhang Xuekun, responsible editor of China Energy Network)

Related Content