CHINA'S MAY CRUDE OIL IMPORTS FROM RUSSIA SURGED 55% YEAR-ON-YEAR, HITTING A RECORD HIGH

CHINA'S MAY CRUDE OIL IMPORTS FROM RUSSIA SURGED 55% YEAR-ON-YEAR, HITTING A RECORD HIGH

China's crude oil imports from Russia surged 55 percent in May from a year earlier to a record, making Russia the largest supplier of crude to China, replacing Saudi Arabia on June 20. Chinese refiners have seized the opportunity to buy at a discount to Russian crude as Russia is sanctioned over the Russia-Ukraine conflict.

According to data from China's General Administration of Customs, China imported nearly 8.42 million metric tons of crude oil from Russia in May, or roughly 1.98 million bpd, up from 1.59 million bpd in April. China is the world's largest crude oil importer.

China's state-owned refinery giant has stepped up its purchases of Russian crude, lured by deep discounts after Western oil majors and trading firms pulled out due to sanctions.

Saudi Arabia, China's second-largest supplier, exported 7.82 million tonnes to China in May, up 9% from a year earlier, equivalent to 1.84 million bpd. That was down from 2.17 million bpd in April.

Russia regained the top spot after a 19-month hiatus.

Customs data released on Monday also showed that China imported 260,000 tonnes of Iranian crude last month, the third time China has imported Iranian oil since December.

The data showed that no crude oil was imported from Venezuela. State oil companies have avoided buying the country's crude since late 2019.

Over the past two years, Malaysia has often served as a transit point for Iranian and Venezuelan oil, and China's imports from Malaysia were 2.2 million tonnes, unchanged from April but more than double the same period a year earlier.

China's crude oil imports from Brazil fell 19% from a year earlier to 2.2 million tonnes as supplies from Brazil faced competition from cheaper crude from Iran and Russia.