Title: China’s Oil Imports from Russia Reach Record High Amid Sanctions
Date: June 20, 2023
BEIJING (Reuters) – Chinese government data revealed that oil imports from Russia soared to an unprecedented level in May, as private refiners capitalized on discounted prices for Russia’s Espoo and Urals crude amidst sanctions imposed on them.
According to the General Administration of Customs, China’s total oil imports from Russia reached 9.71 million metric tons in May, equivalent to 2.29 million barrels per day (bpd). This marked a 15.3 percent increase from the same month last year, representing the highest level ever recorded. Furthermore, it reflected a significant surge of 32.4 percent from the previous month’s total of 1.73 million bpd.
While crude imports in May totaled 7.32 million tons, equivalent to 1.72 million bpd, it experienced a decline of 16 percent compared to the previous month’s 2.05 million bpd. In April, Saudi Arabia held the position of the largest crude exporter to China.
The surge in demand for Russian crude primarily stemmed from private refiners in China, including major firms like Hengli Petrochemical. Hengli Petrochemical’s 400,000-bpd refinery in Dalian received its first shipment of Urals crude in early May, amounting to 730,000 barrels. Additionally, the company imported a total of 3.71 million barrels of ESPO crude throughout the month, as per ship tracking data.
Smaller private refineries in the coastal province of Shandong also reported improved profit margins due to the purchase of sanctioned cargoes from Russia, Iran, and Venezuela. To circumvent Western sanctions, Chinese refiners employ middlemen traders for shipping and insurance operations related to Russian crude.
Customs data further revealed that China’s imports from Malaysia reached 1.34 million bpd in May, marking a significant increase of 158.6 percent compared to the same period last year. Malaysia often serves as a transit point for sanctioned goods from Iran and Venezuela.
Despite heightened geopolitical tensions between the United States and China, imports from the U.S. more than tripled year-on-year to 2.22 million tons in May. This increase can be attributed to the short-term price advantage over OPEC member countries following the OPEC+ production cuts announced in early April.
China’s record-breaking oil imports from Russia highlight the country’s efforts to diversify its energy sources and secure alternative suppliers amidst geopolitical uncertainties and trade disputes. The surge in demand for Russian crude, particularly from private refiners, underscores the resilience of China’s oil market and its ability to adapt to changing global dynamics.
(Prepared by Noha Zakaria for the Arabic Bulletin – Edited by Amira Zahran)
japan resumes russian oil imports
Month. This decrease was attributed to maintenance and maintenance at Chinese refineries, which resulted in lower crude demand.
The surge in oil imports from Russia can be attributed to private refiners in China taking advantage of discounted prices for Russia’s Espoo and Urals crude. These private refiners capitalized on the opportunity amidst the ongoing sanctions imposed on them. Despite the sanctions, Chinese private refiners were able to import a record-high 9.71 million metric tons of oil from Russia in May.
It’s important to note that these oil imports are occurring in the context of ongoing trade disputes and sanctions between various countries. While the provided search results do not explicitly mention China’s oil imports from Russia in relation to disputes cases, it is possible that there may be relevant information available on the website of the World Trade Organization (WTO) where they maintain a chronological list of disputes cases.
To explore this possibility, you can visit the WTO website and navigate to their list of disputes cases. This list is organized in reverse chronological order, with the newest cases appearing first. By reviewing this list, you may be able to find any disputes or relevant information related to China’s oil imports from Russia and the sanctions involved.
Please note that the search results provided do not contain specific information regarding China’s oil imports from Russia in relation to disputes cases. Additional research or a closer examination of the provided search results may be required to obtain more detailed information on this specific topic.
This article sheds light on how China’s private refiners are defying sanctions by significantly increasing their oil imports from Russia. It highlights the record-breaking figures, signaling the resilience of these refiners and the complex dynamics behind the global oil market.