Russia Beats S. Arabia in China Oil Supply

Russia Beats S. Arabia in China Oil Supply
Russia Beats S. Arabia in China Oil Supply

Russia overtook Saudi Arabia to become the biggest seller of crude to China for the second time this year in the race to supply the world’s biggest energy consumer.

Asia’s largest economy bought a record 4.04 million metric tons of crude from Russia, or about 988,000 barrels a day, in September. That is 42% more than a year earlier and 31% higher than in August, according to data from the General Administration of Customs in Beijing on Wednesday, Bloomberg reported.

Oman was the third-biggest supplier, behind Saudi Arabia, while Angola slipped to fourth place from second in the previous month. China, the world’s second-biggest oil user, is buying near record amounts of crude from overseas as it seeks to take advantage of a plunge in prices to boost its stockpiles.

The International Energy Agency estimates the nation will be responsible for more than a quarter of global consumption growth next year, making it a key battleground for producers seeking to defend market share amid a worldwide oversupply.

A direct pipeline to northern China has boosted exports of East Siberia-Pacific Ocean crude. Seaborne shipments were also spurred by the proximity of the Kozmino Port in Russia’s east to the Asian nation, while new rules allowing small independent refineries known as teapots to buy imported supplies have also helped sales.

Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, exported 3.95 million tons to China in September, 17% lower than a year earlier, the customs data show.