Russia surpasses Saudi Arabia for 3rd time in China crude supply

Published December 21, 2015
China brought in about 949,925 barrels per day (bpd) of Russian crude oil in November, compared with 886,950 bpd from Saudi Arabia, data from the General Customs Administration showed. — AFP/File
China brought in about 949,925 barrels per day (bpd) of Russian crude oil in November, compared with 886,950 bpd from Saudi Arabia, data from the General Customs Administration showed. — AFP/File

BEIJING: Russia overtook Saudi Arabia for the third time this year in November as China's largest crude oil supplier, customs data showed on Monday, as Russia captures fresh demand from China's new crude buyers.

China brought in about 949,925 barrels per day (bpd) of Russian crude oil in November, compared with 886,950 bpd from Saudi Arabia, data from the General Customs Administration showed.

For the first 11 months, Saudi remained the number one seller with total supplies at 46.08 million tonnes, or around 1.01 million bpd, up 2.1 per cent over the year-ago period.

Russia, which ramped up exports by 28 per cent over the same period, supplied 37.62 million tonnes, or about 822,200 bpd.

China has since July allowed more than a dozen mostly independent companies to import crude oil for the first time, pushing its crude oil purchases to new highs while Beijing has also stepped up its strategic stockpiling.

With a rigid allocation system and destination restrictions on contracts, Saudi crude is less appealing to China's new crude importers when compared to Russian grades, traders have said.

Cheaper freight costs for Russian crude versus suppliers from outside the Asia-Pacific region were also helping Russia boost its exports to China, traders said.

Saudi Arabia has extended annual crude oil contracts with China for 2016 at almost unchanged volumes for a third year, as buyers bet on abundant global supplies and low prices to widen their purchase options, sources said earlier this month.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...
Under siege
Updated 03 May, 2024

Under siege

Whether through direct censorship, withholding advertising, harassment or violence, the press in Pakistan navigates a hazardous terrain.
Meddlesome ways
03 May, 2024

Meddlesome ways

AFTER this week’s proceedings in the so-called ‘meddling case’, it appears that the majority of judges...
Mass transit mess
03 May, 2024

Mass transit mess

THAT Karachi — one of the world’s largest megacities — does not have a mass transit system worth the name is ...