China May oil imports from Russia soar to a record, surpass top supplier Saudi

Oil and gasoline tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song

SINGAPORE, June 20 (Reuters) – China’s crude oil imports from Russia soared 55% from a 12 months earlier to a report stage in May, displacing Saudi Arabia because the top supplier, as refiners cashed in on discounted provides amid sanctions on Moscow over its invasion of Ukraine.

Imports of Russian oil, together with provides pumped through the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totalled almost 8.42 million tonnes, in accordance to knowledge from the Chinese General Administration of Customs.

That’s equal to roughly 1.98 million barrels per day (bpd) and up a quarter from 1.59 million bpd in April.

The knowledge, which reveals that Russia took again the top rating of suppliers to the world’s largest crude oil importer after a hole of 19 months, signifies that Moscow is in a position to discover patrons for its oil regardless of western sanctions, although it has had to slash costs.

And whereas China’s general crude oil demand has been dampened by COVID-19 curbs and a slowing economic system, main importers, together with refining large Sinopec and dealer Zhenhua Oil, have stepped up shopping for cheaper Russian oil on top of sanctioned provides from Iran and Venezuela that enables them to reduce competing provides from West Africa and Brazil. learn extra

Saudi Arabia trailed because the second-largest supplier, with May volumes up 9% on 12 months at 7.82 million tonnes, or 1.84 million bpd. This was down from April’s 2.17 million bpd.

Customs knowledge launched on Monday additionally confirmed China imported 260,000 tonnes of Iranian crude oil final month, its third cargo of Iran oil since final December, confirming an earlier Reuters report.

Despite U.S. sanctions on Iran, China has saved taking Iranian oil, normally handed off as provides from different nations. The import ranges are roughly equal to 7% of China’s whole crude oil imports. learn extra

China’s general crude oil imports rose almost 12% in May from a low base a 12 months earlier to 10.8 million bpd, versus the 2021 common of 10.3 million bpd. learn extra

Customs reported zero imports from Venezuela. State oil companies have shunned purchases since late 2019 for concern of falling foul of secondary U.S. sanctions.

Imports from Malaysia, typically used as a switch level within the final two years for oil originating from Iran and Venezuela, amounted to 2.2 million tonnes, regular versus April however greater than double the year-earlier stage.

Imports from Brazil fell 19% from a 12 months earlier to 2.2 million tonnes, as provides from the Latin American exporter confronted cheaper competitors from Iranian and Russian barrels.

Separately, knowledge additionally confirmed China’s imports of Russian liquefied pure gasoline (LNG) amounted to almost 400,000 tonnes final month, 56% greater than May of 2021.

For the primary 5 months, imports of Russian LNG – from principally Sakhalin-2 challenge within the Far East and Yamal LNG in Russian Arctic – rose 22% on the 12 months to 1.84 million tonnes, in accordance to customs knowledge.

Below is the detailed breakdown of oil imports, with volumes in million tonnes:

(tonne = 7.3 barrels for crude oil conversion)

Reporting by Chen Aizhu and Beijing newsroom; Editing by Tom Hogue and Muralikumar Anantharaman

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