Chinese Imports of Russian Oil Hit Record High in May

Data released by the Chinese Communist Party’s (CCP) customs on June 20th, showed that the country’s crude oil imports from Russia soared to a record level of 55% year-on-year in May. Thus replacing Saudi Arabia as the largest supplier. The main reason for this may be that Moscow’s widespread sanctions over its invasion of Ukraine have led to low sales of its crude oil, while refineries have taken advantage of the opportunity to increase their profits, thus pushing up imports.

According to China’s General Administration of Customs, total Russian oil imports, including supplies via the East Siberian Pacific Pipeline, shipments from Russian Europe, and Far Eastern ports, amounted to nearly 8.42 million tons. This is equivalent to about 1.98 million barrels per day (bpd), up by as much as a quarter from 1.59 million bpd in April.

The data also show that Russia is once again the world’s largest exporter of crude oil after a 19-month hiatus. This shows that despite Western sanctions, Moscow has been able to find buyers for its oil, although it has had to cut prices significantly.Although, overall crude demand in the Communist country has been curbed by the COVID-19 virus blockade restrictions and the economic slowdown, major importers, including refining giant Sinopec and trader Zhenhua Petroleum, have stepped up purchases of cheaper Russian oil, forcing them to curtail crude imports from West Africa and Brazil.

Russia is now followed by Saudi Arabia as the second-largest supplier after Russia. Its production rose 9 percent year-on-year in May to 7.82 million tons, or 1.84 million barrels per day. This export volume was slightly lower than April’s 2.17 million bpd.

Customs data released on Monday also showed that China imported 260,000 tons of Iranian crude oil last month, its third import since last December. Despite U.S. sanctions against Iran, China continues to get oil from the country, which is often passed off as supplies for other countries. The level of imports is roughly equivalent to 7% of total crude oil imports by the CCP.