Russia strengthens position as a major oil importer in China

Russia strengthens its position, as a major oil importer in China. Russia also took the monthly lead back from Angola, which briefly had top supply spot to China in September. The country ahead of Saudi Arabia on the supply of raw material for the 10 months of this year, and regained first place of monthly volume of imports. The imports of Russian oil to China in October grew by 39% yoy up to 1.12 million barrels per day. On average for the ten months of 2016 and deliveries amounted to 1.03 million barrels per day.

Moreover, total imports of crude oil in China fell to its lowest level since January. The independent oil refineries in the country reduced purchases of oil due to price increase and the growing state control over their activities.

In October, oil imports in China from Iran increased by 129% to 773,860 barrels and from Iraq by 60% to 875,400 barrels per day.

Saudi Arabia, traditionally is the main supplier of raw materials to China, but in October has reduced supplies by 0.28% to 935,800 barrels per day.

The Chinese oil import data comes just several days before the OPEC meeting, which is planned for November 30, when is expected to finalize a planned production cut aimed at propping up prices, which continue to languish below 50 USD per barrel due to oversupply.

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