{"id":7124,"date":"2023-08-20T13:23:15","date_gmt":"2023-08-20T13:23:15","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=7124"},"modified":"2023-08-20T13:23:16","modified_gmt":"2023-08-20T13:23:16","slug":"russia-remains-chinas-top-crude-supplier-in-july-despite-narrower-discounts","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/7124\/","title":{"rendered":"Russia remains China’s top crude supplier in July despite narrower discounts"},"content":{"rendered":"
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Roydad Naft News Agency – Russia remained China’s largest crude supplier in July, Chinese government data showed on Sunday, even as Russian shipments fall from all-time highs on narrower discounts and rising domestic demand crimps Russian exports.<\/p>\n\n\n\n

Arrivals from Russia were up 13% from the same month last year to 8.06 million metric tons in July, or 1.9 million barrels per day (bpd), according to data from the General Administration of Customs.<\/p>\n\n\n\n

For the first seven months of the year, Russian arrivals were up 25% from a year earlier to 60.66 million tons.<\/p>\n\n\n\n

Shipments from Saudi Arabia, at 5.65 million tons, were down 14% from a year earlier and 31% from June.<\/p>\n\n\n\n

Saudi exports to Asian refiners had been expected to fall in July, as Riyadh raised the July official selling price of its flagship Arab Light crude to Asian buyers to a six-month high. Saudi Arabia also announced plans for an extra output\u00a0reduction in July, cutting output to 9 million bpd from 9.96 million bpd in\u00a0June.<\/p>\n\n\n\n

Despite continuing Western sanctions and a price cap on Russian shipments, Russian ESPO grade crude has increasingly traded closer to\u00a0benchmark grades, as strong demand from Indian and Chinese buyers erodes the sanctions discount.<\/p>\n\n\n\n

July-delivery ESPO shipments were priced at a $5-$6 per barrel discount to the ICE Brent benchmark, versus $8.50 against ICE Brent for shipments delivered in March, according to trading sources.<\/p>\n\n\n\n

Stronger domestic demand in Russia was also expected to lead to an overall decline in Russian exports. Shipments from western Russian ports in July were estimated to fall 18% month-on-month, reflecting resurgent domestic refining demand.<\/p>\n\n\n\n

Chinese refiners use intermediary traders to handle shipping and insurance of Russian crude to avoid violating Western sanctions.<\/p>\n\n\n\n

Alternative suppliers have seen their shares grow to make up for lower Saudi and Russian shipments. Angola’s shipments grew 27% from the previous month to 574,581 bpd in July.<\/p>\n\n\n\n

Continuing the previous month’s trend, U.S. exports to China jumped fivefold from a year earlier despite geopolitical tensions, as U.S.\u00a0WTI output\u00a0continues to surge amid OPEC+ supply cuts. U.S. crude shipments to China totalled 161,275 bpd in July, falling from 742,824 bpd in June as arbitrage margins narrowed.<\/p>\n\n\n\n

Imports from Malaysia rose 16% from a year earlier to 911,926 bpd in July. Malaysia is often used as an intermediary point for sanctioned cargoes from Iran and Venezuela.<\/p>\n\n\n\n

Here is the detailed trade breakdown, with volumes in million tons and on-year percentage change calculations by Reuters:<\/p>\n\n\n\n

Country<\/td>Volume<\/td>% Change<\/td>YTD Total<\/td>YTD % Change<\/td><\/tr>
Russia<\/td>8.06<\/td>12.9%<\/td>60.66<\/td>25.2%<\/td><\/tr>
Saudi<\/td>5.65<\/td>-14%<\/td>52.17<\/td>4.7%<\/td><\/tr>
Malaysia<\/td>3.87<\/td>15.9%<\/td>29.47<\/td>104.7%<\/td><\/tr>
Iraq<\/td>5.40<\/td>48.4%<\/td>34.93<\/td>15%<\/td><\/tr>
UAE<\/td>3.51<\/td>-1.4%<\/td>25.02<\/td>8.8%<\/td><\/tr>
Brazil<\/td>2.75<\/td>166.7%<\/td>21.21<\/td>51.2%<\/td><\/tr>
Oman<\/td>3.49<\/td>26.3%<\/td>23.04<\/td>-3.2%<\/td><\/tr>
US<\/td>0.68<\/td>432.9%<\/td>9.45<\/td>106.2%<\/td><\/tr>
Angola<\/td>2.44<\/td>14.9%<\/td>15.24<\/td>-21.1%<\/td><\/tr>
Iran<\/td>NA<\/td>NA<\/td>NA<\/td>NA<\/td><\/tr>
Venezuela<\/td>NA<\/td>NA<\/td>NA<\/td>NA<\/td><\/tr><\/tbody><\/table><\/figure>\n
Updated on