Moscow is emerging as the main supplier of crude oil for the Asian giant so far this year.
Russian exported to China a record amount of oil in the month of Juneaccording to the statistics published this Thursday by the General Administration of Customs of the Asian giant (GAC, for its acronym in English).
According to the figures provided, China imported that month 2.57 million barrels per day from Russia, thus exceeding the levels reached in May, reports The Financial Times. The newspaper points out that in the first half of this year, Beijing bought 2.13 million barrels from Russia every day, compared to 1.88 million bought from Saudi Arabia. Thus, Moscow is emerging as the main supplier of crude for China so far this year.
In general terms, the Asian giant imported 11.4 million barrels per daywhat represents a year-over-year increase of 11.7%. Likewise, it is an increase of 15.3% compared to the levels prior to the covid-19 pandemic, reports The Financial Times.
The newspaper highlights that the growth in crude oil imports occurs “In a context of faltering recovery” of what is today the world‘s second largest economy, which is trying to accumulate oil reserves and export refined products.
On the other hand, official customs data suggest that since the start of the conflict in Ukraine Russian supplies have been cheaper than those of other nations that are part of the Organization of Petroleum Exporting Countries (OPEC+). Thus, at the end of 2022 Russian crude was sold to China at a discount of $9 per barrel, and $11 as of June, compared to the price of oil from Saudi Arabia.
Analysts consulted by the British newspaper disagree on the reasons that drive China to increase its oil reserves. The head of the crude trading department at the Rystad Energy research group, Mukesh Sahdev, considered that Beijing “could be preparing for a geopolitical situation” not specified, without ruling out tensions around Taiwan as such risks.