Russia becomes China's largest crude oil supplier

2023 figures show that Russia has surpassed Saudi Arabia to become China's largest crude oil supplier.

China’s customs said last week that Russia delivered a record 107 million tonnes of crude oil to China last year, or 2.14 million barrels a day. That far outstripped other major oil exporters, such as Saudi Arabia and Iraq.

China’s oil imports from Saudi Arabia are set to fall 1.8% to 85.96 million tonnes in 2023, as the Middle Eastern country loses market share to cheaper Russian oil.

Crude oil tanker arrives at Zhoushan port in Ningbo city (Zhejiang, China). Photo: AFP

Russian oil has been shunned by many countries following Western sanctions. However, demand from China and India has surged, pushing the country’s ESPO prices higher over the past year, surpassing the $60 ceiling Western countries have imposed on Russian oil exports.

The price of ESPO crude for December 2023 delivery is almost equivalent to Brent. ESPO is currently priced at around $75 a barrel. Meanwhile, Saudi Arabia has raised the price of Arab Light from July 2023, forcing many refiners to look for cheaper products.

China is now the world's largest importer of crude oil. Despite Western sanctions on Russian oil following the conflict in Ukraine, China continues to buy large amounts of Russian crude for its domestic refineries.

To avoid violating Western sanctions, Chinese refiners have used intermediaries to handle shipping and insurance when buying Russian oil. In addition to Russian oil, the country also buys oil from Iran and Venezuela, which are also under Western sanctions.

US oil shipments to China last year rose 81.1% from the year before, despite rising tensions between the two countries. China's total crude oil imports last year hit a record 563.9 million tonnes, or 11.28 million barrels a day.

Ha Thu (according to Reuters)

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