In 2023, Russia overtook Saudi Arabia to become China’s leading crude oil supplier, as revealed by Chinese customs data. Russia exported a record 107.02 million metric tons to China, equivalent to 2.14 million barrels per day (bpd), significantly exceeding the quantities supplied by Saudi Arabia and Iraq.
Saudi Arabia, which previously held the top supplier position, experienced a 1.8% decrease in exports to China, totaling 85.96 million tons. This decline was attributed to the market preference for cheaper Russian crude. The Western sanctions imposed on Russia following its invasion of Ukraine in 2022 led to a substantial price reduction for Russian oil. Despite the sanctions, the demand for Russian oil surged, especially from Chinese and Indian refiners, pushing the price of Russian ESPO crude above the $60 per barrel cap set by the Group of Seven in December 2022.
Saudi Arabia, in response to the changing market dynamics, increased prices for its Arab Light crude from July onwards, causing some refiners to seek more affordable options. Both Saudi Arabia and Russia, among the world’s top oil producers, implemented output and export cuts to support prices.
China’s overall crude oil imports in 2023 reached a record 563.99 million metric tons, translating to 11.28 million bpd. Chinese refiners managed the import of Russian crude through intermediary traders to comply with Western sanctions. Additionally, China saw a significant increase in imports tagged as originating from Malaysia, often used as a trans-shipment point for sanctioned cargoes from Iran and Venezuela. Despite eased U.S. sanctions on Venezuela, China reported no official shipments from the country in December. However, imports from the U.S. surged by 81.1% last year, despite geopolitical tensions.
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