Russia remained China's largest crude oil supplier in July, according to Chinese customs data, even as its shipments declined from record highs set earlier in the year.
Russian crude arrivals into China through its ports were up 13% from a year ago to 1.9 million barrels per day. However, for the first seven months of 2022, shipments from Russia were up 25% as its discounts attracted more buyers earlier in the year.
Shipments from Saudi Arabia fell 14% month-on-month to 565,000 bpd as the kingdom raised prices and announced further output cuts in July. Strong domestic demand in Russia and narrowing discounts for its ESPO blend also contributed to lower exports last month.
Despite Western sanctions on its energy over Ukraine, alternative supply is helping make up for lower volumes. Angolan shipments grew 27% while U.S. exports jumped five-fold from a year ago despite tensions. Imports from Malaysia, often used for sanctioned Iranian and Venezuelan oil, rose 16%.
While Russian supplies decreased from record highs, its dominance as China's top crude source underscores how sanctions are having little effect on the India and China markets where discounts still attract buyers. Tight supply globally has also left few alternatives for Asia's top importers.
