Russia expected to replace Saudi Arabia to become Chinas largest oil supply coun

U.S. media reports that Russia is about to surpass Saudi Arabia and become China's largest oil supply country.

According to the Wall Street Journal on Wednesday (June 28), since the beginning of the Ukrainian war, Saudi Arabia's largest energy market in China has been steadily declining due to great discounts in Russia.Saudi Arabia ’s earlier production reduction this month has not achieved the expected effect of boosting prices to offset the impact of the decline in demand.

Russia has appeared in confusion in recent days, and the mercenary organization Wagner launched a rebellion, but the rebellion quickly calmed down, so far the Russian energy industry has been affected very little.However, investors and analysts are paying close attention to this situation. One of the reasons is that this may destroy the subtle alliance between the Organization of the oil output country (referred to as OPEC) led by Saudi Arabia and Russia.

It is reported that the competition for the Chinese market has always been one of the sources of tension.

Saudi Arabia's crude oil exports to China in April was briefly surpassed by Russia, and Saudi Arabia recaptured.At present, the return of crude oil exports to China is roughly the same.But analysts said that all signs showed that Russia will lead the lead and maintain this advantage in the next few months.

The commodity data provider Kpler said that crude oil from Russia now accounts for 14%of China's crude oil supply, which is higher than 8.8%before the Ukrainian war.As of the three months as of May, Saudi Arabia's share fell to 14.5%.

In India, this reversal is greater. Saudi Arabia currently has a 13%share in the Indian oil market, while the Ukrainian war is 20%before the war.According to Kpler's data, Russia currently accounts for about 40%of Indian crude oil imports, and 3%before the war.

The Wall Street Journal report also mentioned that China is increasingly hoarding cheap Russian oil to prepare for economic efforts and the needs of prices.According to data from the oil data analysis company Refinitiv Eikon, China's average daily inventory increased by about 1.77 million barrels in May, the largest increase since July 2020.