Reuters: Russia remains the largest supplier of oil to China for the third month

Russia remains the largest supplier of oil for the third month in a row China, transmits Reuters, citing data from China’s General Administration of Customs.

According to Chinese customs, in July, Russian oil imports, including deliveries via the East Siberia-Pacific Ocean pipeline and sea transportation from European and Far Eastern ports of Russia, amounted to 7.15 million tons. This is 7.6% more than a year ago, according to customs administration data.

Russia supplied China with about 1.68 million barrels of oil per day in July, but this volume was lower than the record levels of May, when China received 2 million barrels per day. The country is the largest buyer of oil in Russia, the agency notes.

Since the beginning of the year, imports from Russia to China amounted to 48.45 million tons, which is 4.4% more than last year. Moscow still lags behind Saudi Arabia, which, according to Reuters, delivered 49.84 million tons. The level of crude oil deliveries to Beijing in July fell by 9.5% compared to 2021.

Oil purchases in Russia, according to customs, have squeezed out energy supplies from Angola and Brazil: oil imports from these countries have decreased by 27% and 58%, respectively, over the year. Venezuela and Iran, due to fears of US sanctions, did not supply oil to China at all in July.

Imports from Malaysia, which has often served as a transit point for oil from Iran and Venezuela over the past two years, rose 183% year-on-year to 3.34 million tons from 2.65 million tons in June, Reuters said.

In June, the agency wrote that Russia in May 2022 exported to China by 55% more oil compared to May last year and became Beijing’s largest supplier, overtaking Saudi Arabia.

Oil imports from Russia to China rose sharply in 2022, because after the EU refused to buy oil from Russia, Moscow had to reorient its supplies and sell at a discount. The EU embargo on the purchase of Russian oil will come into force in December this year. The G7 countries are also discussing setting a maximum price for Russian oil on the world market: according to Bloomberg, in early July, a range of $40-60 per barrel was discussed.