July 7, 2022

Fior Markets News Blog

Complete News World

Russia became tlifw, China’s largest crude oil supplier, replacing Saudi Arabia

Highlights of the story

  • Sino-Russian oil trade reaches new highs
  • Russia has overtaken Saudi Arabia as China’s largest crude oil exporter
  • Russia supplies oil to China at affordable prices

Not only is India buying crude oil from Russia, but China is also not lagging behind in this regard. Oil trade between China and Russia has increased to an all-time high. Russia has become China’s largest oil supplier, according to media reports. Russia has overtaken Saudi Arabia in oil exports to China. Oil trade between the two countries has improved as Western sanctions on oil have pushed Russia to sell crude oil at concessional prices to China.

According to the BBC, Russian oil imports rose 55 percent in May to a record high a year earlier. China, which previously bought most of the oil from Saudi Arabia, is now occupied by Russia. China has seen a surge in oil purchases from Russia, despite Govt sanctions and a sluggish economy.

Several Chinese companies, including Chinese refiner Sinopec and state-owned Zhenhua Oil, have increased their purchases of Russian crude in recent months. European countries and the United States have imposed sanctions on Russian oil in connection with the invasion of Ukraine, which has led Russia to offer major discounts on crude oil to countries such as China and India.

China imported about 8.42 metric tons of crude oil last month, according to data from the Chinese Customs Department. These imports are made via the eastern Siberian Pacific Ocean pipeline and the sea. China bought only 7.82 metric tons of crude oil from Saudi Arabia last month.

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Petroleum exports are Russia’s main source of income. Russia has been hit by sanctions, and so have Western nations. However, despite a slump in exports in May, the BBC reported that Russia had earned nearly $ 100 billion from fossil fuel exports in the first 100 days of its invasion of Ukraine.

Of Russia’s total exports, 61 percent were imported by EU countries, valued at about $ 59 billion.

In fact, buyers of Russian oil are limited by a number of restrictions. This is the reason why some countries like India get oil at high prices.

Indian oil refineries bought about 25 million barrels of oil from Russia in May. It accounts for more than 16 per cent of India’s total oil imports.

According to reports, the import of crude oil from Russia to India by sea has also increased. For the first time in April, Russia’s oil share in India by sea was five percent. Most oil exports from Iraq to India in May. Saudi Arabia is second and Russia is second.