Saudi oil exports to China exceeded expectations last June, registering an increase of 12% compared to May 2023.
Total Saudi oil shipments to China amounted to about 7.92 million metric tons last month, or 1.93 million barrels per day, according to data seen by the specialized energy platform.
The amount of Saudi oil exports to China in June is about 57% higher than the quantities shipped from Riyadh to Beijing in June last year, according to Reuters.
The data shows the fallacies that the Western media always tries to propagate about the decline in the shares of OPEC countries, led by Saudi Arabia, in the volume of imports of China and India, which always focus on the proportions, without highlighting the volumes of exports from the countries of the Middle East.
Saudi Arabia’s oil exports
Saudi oil exports to China missed expectations that Riyadh’s shipments to Beijing fell in June, as declining refining margins prompted Chinese refiners to look for cheaper crude from Russia and other suppliers.
Reuters had indicated that some Chinese refineries asked Saudi Arabia for lower volumes in June.
This came despite Saudi Aramco announcing a reduction in prices for Arab Light crude shipments to Asia by 25 US cents to $2.55 per barrel, above the Oman/Dubai average prices for loading in June.
Reuters estimated, quoting its sources, that Saudi oil exports to China may be less than May by up to 5 million barrels (in total per month), which is contrary to the official data issued today, Thursday, July 20 (2023).
And Saudi Aramco stressed last May its intention to supply its customers in Asia with full quantities of crude oil that they requested in June.
The increase in Saudi oil exports to China also comes despite the Kingdom’s commitment to reducing its production by 500,000 barrels per day, according to the OPEC + agreement, which began implementation last May, reducing its share in the alliance agreement to 9.978 million barrels per day.
China’s imports of Russian oil
China’s imports of Russian oil reached an all-time high in June, Chinese government data showed, as refiners continued to snap up supplies from the East Siberia-Pacific pipeline, despite a discount to global benchmarks.
Incoming volumes from Russia were about 10.50 million metric tons in June, or the equivalent of a daily average of 2.56 million barrels.
The quantities of shipments increased by 44% compared to the same month last year, according to data viewed by the specialized energy platform, quoting the General Administration of Customs.
Russian imports in the first half of the year amounted to 52.61 million metric tons, an increase of 22% over the same period last year.
Although Western sanctions and the imposition of a price cap are factors that ensure that Russian oil trades at a price lower than global benchmarks, this discount has declined in the past few months, due to the increase in demand for supplies pumped through the East Siberia-Pacific pipeline from Chinese buyers and the intensive purchases by Indian refineries of Russian Urals crude.
Chinese refineries use intermediaries to handle shipping and insurance for Russian crude shipments to avoid violating Western sanctions.
Imports from Malaysia and America
Customs data showed that Chinese oil imports from Malaysia amounted to 1.51 million barrels per day in June, an increase of 133% over the same period last year, ranking third behind Russia and Saudi Arabia.
Malaysia is often used as an intermediary point for sanctioned oil shipments from Iran and Venezuela.
US exports to China rose by 354% compared to last year, despite the geopolitical tension between the two sides, as US crude last month maintained pricing advantages over producers in the Middle East after OPEC + cut production.
US crude shipments to China reached 3.05 million metric tons in June, the highest rate since December 2020.
Chinese refineries are expected to increasingly lean towards alternative supplies from countries such as Brazil in the third quarter, with Russia and Saudi Arabia pledging to cut production.
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