• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 1 day World could get rid of Putin and Russia but nobody is bold enough
  • 4 hours America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine

Breaking News:

Chicago Files Suit Against Big Oil

Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Russia Keeps Top Spot As China’s No.1 Crude Supplier

Russia continued to be China’s biggest crude oil supplier in July for a fifth consecutive month, while Chinese refineries have been taking in more Brent-price-linked West African crude at the expense of sour Middle Eastern varieties as OPEC’s cuts led to narrower price differentials making African oil more attractive for buyers.

China’s crude oil imports from Russia averaged around 1.17 million bpd in July, a 54-percent surge compared to the same month last year, according to data by China’s General Administration of Customs cited by Reuters.

Total Chinese imports last month stood at 8.18 million bpd, down compared to June, but up 12 percent year-on-year. Year-to-date, China’s crude imports rose 13.6 percent to 8.51 million bpd.

Down in the suppliers’ list behind Russia came Saudi Arabia and Angola—China’s no.2 and no.3 crude oil providers in July, respectively. Chinese imports from Saudi Arabia inched down 0.8 percent annually to around 940,000 bpd, while imports from Angola dropped 17.1 percent to 921,520 bpd.

Year to date, however, Angola kept its spot as China’s second-biggest supplier for a third straight month with shipments up 15 percent in January-July.

As early as the start of OPEC’s production cuts, reduced supplies resulted in higher prices for Middle Eastern crude benchmark Dubai and a narrower Brent/Dubai spread, which made the shipment of Brent-price-linked crude grades to Asia profitable.

On the other hand, independent refiners in China – the so-called teapots—not bound by long-term supply contracts with Saudi Arabia—have been replacing the Middle Eastern grades with Urals, a Russian grade with qualities similar to the Oman crude grade and with even better refining economics, according to traders.

Related: The Latest Red Flag For U.S. Shale

Urals, which is priced against the Brent, is now a business-feasible opportunity for smaller Chinese refiners, after the rise in Middle Eastern benchmarks.

ADVERTISEMENT

Chinese refinery demand helped Russia to outstrip Saudi Arabia to take the top spot in crude exports to China last year. Russia’s exports jumped 25 percent annually to 1.05 million bpd in 2016, compared to Saudi Arabia’s shipments of 1.02 million bpd, inching up just 0.9 percent.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • jack ma on August 23 2017 said:
    That is because Russia takes the Yuan for payment and then uses the SGE to exchange it for physical gold. Qatar and Angola are doing the same as is India, Venz, Brazil, Syria, and more. Saudi will be next and that will be the final nail in the petro-dollar from the Bretton Woods Accord. Bye to the last of 3 pillars of the USA. The 'doom' and the 'dark' abyss are ahead and in the path, as broken debtors nation (USA) collapses and the East rises with the Silk Road prosperity and the dedollarized Eurasian zone of trade. IMHO

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