• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours Reality catching up with EV forecasts
  • 2 days Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide

Breaking News:

Equinor Reports Record Profits In 2022

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Why Russia Beat Saudi Arabia As China’s No.1 Oil Supplier

Russia last year overtook Saudi Arabia as China’s biggest supplier of crude oil thanks in large part to increased demand from independent refineries, popularly called teapots. This is what statistics data released today by Beijing’s customs authority show.

The average daily amount that Russian companies exported to China in 2016 stood at 1.05 million barrels, up by 25 percent from 2015. Saudi Arabia’s average daily shipments to the world’s second-largest oil consumer were 1.02 million barrels daily in the period, an amount representing a slight 0.9-percent uptick on 2015.

ADVERTISEMENT

Russia is likely to keep its place as top exporter to China this year as well, as long as demand from teapots remains intense: while China’s state oil companies are bound by long-term contracts with Saudi Arabia, the small refineries have taken advantage of more flexible export conditions offered by Russian exporters as well as from the proximity of Russia’s export network. The flagship in this network is the East Siberia-Pacific Ocean pipeline, which will see increased flows of crude this year to the East.

ADVERTISEMENT

Besides the flow expansion plans for the ESPO pipeline, Russia will also benefit from a much lower production cut quota under its deal with OPEC from December, while Saudi Arabia will have to reduce its output by almost half a million barrels daily. Related: What A Trump Presidency Means For Canadian Oil

China’s total oil imports last year hit a new high, with foreign oil satisfying more than 64 percent of demand – a trend that is seen to continue over the next four years. In the 2015- 2020 five-year plan, total imports are projected to increase by 17 percent, mostly on the back of falling domestic output, itself a result of maturing fields and high production costs.

This year alone, according to state giant CNPC, domestic demand for crude will hit 12 million barrels daily, which would necessitate a 5.3-percent increase in imports.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News