FX.co ★ Russia outpaces Saudi Arabia as China’s top oil supplier

Russia overtook Saudi Arabia to become the largest oil supplier to China last year, Bloomberg reported, citing Chinese customs data.

In 2023, China purchased a record 107 million tons of Russian crude averaging $77 per barrel, up 25% from 2022. This made Russia China's top oil supplier for the first time since 2018. Russia was also the largest exporter of fuel oil to China, supplying 9.6 million tons.

Saudi Arabia ranks second among major oil exporters. In 2023, the kingdom shipped nearly 86 million tons of crude oil to Beijing. The third and fourth positions on the list of leading suppliers of hydrocarbons to China go to Iraq and Malaysia respectively. Notably, Iranian oil is often passed off as oil originating in Malaysia.

Despite the price cap of $60 per barrel, Chinese refineries are actively buying cheap Russian oil. According to Bloomberg, oil from the Far East is the most in-demand one due to well-established supply routes.