China imports more oil from Saudi Arabia than any other country in June

BEIJING (Reuters) – China’s crude oil imports from Saudi Arabia increased 15% in June from a year ago, as refineries ordered record volumes of fuel in March and April when oil prices fell, solidifying the position of the kingdom as the main supplier of oil to China.

Imports from Saudi Arabia increased to 8.88m tonnes in June, or 2.16m bpd, in June, according to data from the General Administration of Customs on Sunday.

That was in line with May volumes, but well above 1.89 million bpd during the same period last year.

Record imports follow a price war between Saudi Arabia and Russia, the world’s leading oil exporters, during March and April, when the coronavirus pandemic decreased demand and caused global fuel surplus.

Shipments from Russia were 7.98 million tons last month, or 1.95 million barrels per day (bpd), an increase of about 7% from 1.82 million bpd in May and 1.73 million bpd in June 2019.

However, Saudi Arabia achieved further oil cuts from June and increased crude prices, as a drop in oil prices weighed on the kingdom’s budget.

China, the world’s largest importer of crude oil, recorded a record 53.18 million tonnes last month, according to customs data.

China also increased inflows from Brazil, Norway and Angola, said Emma Li, an analyst at Refinitiv.

Brazil, whose massive offshore projects are coming online, offered Asian refineries relatively high-quality competitive oil deals, as did China and other Asian countries contained the coronavirus and reopened their economies.

Analysts expect China to see another record amount of crude imports in July, as some loads being loaded in May are still underway, while oil inventory at major Chinese ports slows down new arrivals.