China’s Saudi oil imports surge in May to all-time high
Refineries crank up production to meet recovery in fuel demand as country emerges from lockdown
Christine Lagarde
China’s crude oil imports from Saudi Arabia nearly doubled in May from a year earlier to all-time high as refineries snapped up cheap fuel, while the Kingdom retained its position as the top supplier to the world’s biggest oil buyer.
Arrivals from Saudi Arabia last month reached 9.165 million tons, or 2.16 million barrels per day (bpd), up about 95 percent from 1.11 million bpd in May 2019 and up 71 percent from 1.26 million bpd in April, data from the General Administration of Customs showed.
Chinese refineries have cranked up throughput to meet a recovery in fuel demand, but have also been increasing crude storage to take advantage of cheap prices after the coronavirus pandemic roiled global demand.
Energy consultancy Kpler estimated China’s crude storage has reached an all-time high of 782 million barrels, with the country’s total capacity 61 percent full. China’s overall crude oil imports jumped 19.2 percent in May from a year earlier to the highest monthly level on record, data released earlier this month showed, as demand for fuel recovered strongly after the easing of coronavirus curbs.
In May, Chinese refineries received their first crude cargo from the US since November, of about 550,000 tons, the customs data released late on Thursday showed.
China is set to import a record
HIGHLIGHTS
● Saudi Arabia at record 2.16 million bpd.
● Russia oil shipments at 1.82 million bpd.
● Iranian shipments near record lows.
amount of US crude oil in July, Refinitiv data showed, as cargoes bought by bargain hunters during the depths of the price rout in April get delivered.
Russian shipments last month rose to 7.71 million tons, or 1.82 million bpd, up from 1.75 million bpd in April and 1.5 million bpd over same period last year. Amid tight US sanctions, China shied away from imports from Venezuela and shipments from Iran were near record lows, data showed.