China raises crude oil imports from Russia amid falling Saudi shipments
Date
7/21/2024 5:13:25 AM
(MENAFN) In the first half of this year, China's total crude oil imports from Russia, its largest supplier, rose by 5 percent as refiners sought cheaper crude options. However, imports from Saudi Arabia, the second-largest supplier, experienced a decline. Official data released on Saturday indicated that shipments from Saudi Arabia in June dropped by 14 percent year-on-year, totaling 6.82 million tons. Year-to-date, Saudi shipments have decreased by 13 percent compared to the previous year, amounting to 40.38 million tons or approximately 1.62 million barrels per day.
Conversely, total crude oil imports from Russia, including both pipeline and cargo shipments, fell by 20 percent in June compared to the previous year, reaching 8.43 million tons, or 2.05 million barrels per day. This represents a decrease from 2.1 million barrels per day in May and a significant drop from the all-time high of 2.56 million barrels per day recorded in June 2023. The reduction in Russian imports in June was partly due to diminished demand from independent oil processors in China, who faced shrinking margins and weak domestic fuel demand, leading them to scale back operations to their lowest level since early 2020. Additionally, decreased demand for Russian Urals crude from European ports and higher freight rates due to tensions in the Red Sea further contributed to the decline.
Overall, China's total crude oil imports fell by 11 percent from a record high last year, with a rare annual decline of 2.3 percent in the first six months of this year. This decrease reflects weaker-than-expected domestic demand as China, the world's second-largest economy, struggles to recover. Notably, China did not report any imports from Iran or Venezuela last month, and shipments from the United States fell dramatically by 60 percent year-on-year to 1.21 million tons in June.
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