In a remarkable development, China’s import of Russian crude oil reached an unprecedented peak of 2.29 million barrels per day (bpd) in May. The world’s leading importer of crude oil continues to capitalize on discounted Russian oil, propelling their crude oil imports from Russia to new heights.
Data from the Chinese General Administration of Customs, as reported by Reuters, reveals a staggering 15.3% increase in China’s imports of Russian crude oil compared to May of the previous year. Notably, this surge represents a remarkable 32.4% jump when compared to April’s crude oil imports of 1.73 million bpd from Russia.
Saudi Arabia, Russia’s primary competitor in the Chinese market and a key partner within the OPEC+ alliance, witnessed a substantial decline in its crude oil shipments to China. In May, Saudi Arabia dispatched 1.72 million bpd of its crude, marking a significant 16% decline on a monthly basis.
Regaining its dominance, Russia once again outpaced Saudi Arabia and regained its position as the leading supplier of crude oil to China in May, after a brief interlude in April when the Kingdom briefly held the top spot.
The early months of this year have seen Russia emerge as the primary crude oil supplier to China, overtaking Saudi Arabia, which held the title of China’s top oil supplier in the previous year.
Given the EU’s embargo on Russian exports and the price limitations imposed on countries adhering to the $60 per barrel cap for Russian crude oil, China and India have emerged as crucial export destinations for Russian crude and oil products. According to the International Energy Agency’s monthly report, these two countries collectively accounted for at least 56% of Russia’s total exports of crude and products in May.
India, the world’s third-largest crude oil importer, experienced a continuous surge in its oil imports from Russia, benefiting from the availability of cost-effective Russian crude exports. In May alone, India imported a staggering 1.96 million bpd of Russian oil, surpassing the combined imports of Iraq, Saudi Arabia, the United Arab Emirates (UAE), and the United States, which amounted to 1.74 million bpd. This places Russian oil’s share at a substantial 42% of India’s overall crude imports, a significant increase from the negligible volumes imported prior to the Russian invasion of Ukraine.
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