In defiance of Western sanctions, Russian oil exports to China reached an impressive 107 million metric tons in 2023, marking a 24% surge, surpassing long-standing leader Saudi Arabia. Official Chinese data unveiled these staggering statistics today, solidifying Russia’s position as the principal oil supplier to the world’s second-largest economy.
On the other hand, Saudi Arabia experienced a 1.7% decline in oil exports to China, falling to 85.9 million metric tons. Iraq secured the third position, witnessing a 6.8% increase in exports to 59.2 million metric tons. Kuwait faced the largest decline, with a 26.2% drop to 24.5 million metric tons.
China’s overall oil imports surged by 11% in 2023, setting a new record at 563.99 million metric tons (11.28 million barrels per day), showcasing the nation’s robust demand despite global economic uncertainties.
The decline in Saudi exports coincided with Riyadh’s decision to raise prices for Arab Light crude in July 2023, prompting some refiners to explore cost-effective alternatives. As China seeks affordable options amid an economic recovery post-COVID-19 restrictions, its economy grew by 5.2% in 2023, in line with analysts’ expectations.
Russian Deputy Prime Minister Alexander Novak revealed that half of Russia’s oil and petroleum exports in 2023 went to China, with India’s share rising to 40% in just two years. Despite Western sanctions and discounted prices, demand from Chinese and Indian refiners has boosted the price of Russian ESPO crude, exceeding the G7-imposed price caps.
In a strategic move, Russia recently announced further cuts to oil exports, reducing production by about 300,000 barrels per day within the OPEC+ agreement. The nation also plans to curtail oil exports to 247 million tons in 2024, signalling ongoing shifts in global oil dynamics.
