China’s oil imports from Saudi Arabia soar 38% in April
According to a recent study, China’s crude oil imports from Saudi Arabia climbed by 38% in April compared to the same month in 2021, reaching the highest level since May 2020.
According to the data, Saudi crude oil shipments to China increased to 8.93 million tons last month, equivalent to 2.17 million barrels per day, up from 1.61 million barrels per day in March.
China’s Russian oil imports increased by roughly 4% in April compared to the same month in 2021, and overall Russian oil shipments reached 6.55 million tons, or 1.59 million barrels per day, in April, up from 1.5 million barrels per day in March.
Despite extensive epidemic-related shutdowns that cut fuel demand and refinery production, China’s overall crude oil imports grew roughly 7% year on year last month, the first increase in three months.
China buys more than a quarter of Saudi Arabia’s oil exports, and if the oil is priced in yuan, these purchases will help the Chinese currency.
In 2018, China launched yuan-priced oil contracts as part of its efforts to make its currency more widely traded, although it had little effect on the dollar’s dominance in the oil market.
The usage of the dollar has become a danger for China as a result of US sanctions on Iran over its nuclear program, as well as penalties against Russia in response to the current war.
China, on the other hand, has begun investing in future Saudi Arabian projects, such as the Neom metropolis.
On the other hand, the US is now one of the world’s largest oil producers, despite importing 2 million barrels of Saudi crude per day in the early 1990s. According to the US Energy Information Administration, these numbers fell to less than 500,000 barrels per day in December 2021. China’s oil imports, on the other hand, have increased dramatically over the last three decades, in tandem with the country’s growing economy.
According to data from the General Administration of Customs, Saudi Arabia was China’s leading crude supplier in 2021, selling 1.76 million barrels per day, followed by Russia with 1.6 million barrels per day.
