For the first time Russia became the largest supplier of oil to China at the end of the year

In 2016, from Russia to China daily supply of 1,05 million barrels of oil. Compared to the 2015 delivery rose nearly a quarter, which allowed Russia to become the largest supplier of oil to China, reports Reuters, citing data from the General administration of customs of China.

The average daily purchases of oil in Saudi Arabia, Chinese consumers in 2016 increased by 0.9% — to 1.02 million barrels. In December 2016, Russia has increased the supply in annual terms, from 4.8% (to 1.19 million barrels), while the volume of supply of Saudi oil dropped by almost 20% (to 841,82 thousand Barr.).

Shift leader experts Reuters explained by the fact that Saudi oil is largely purchased working on the basis of long-term contracts to Chinese state-owned companies. At the same time, numerous independent processing plants oriented to the supply from the Far East, how to deliver small consignments of raw materials out faster and cheaper.

Stronger still grew in 2016 in China, the demand for oil from South America. Procurement in Brazil, Chinese consumers have increased by 37.6%, in Venezuela by 26%. Oil imports from Iran in 2016 China increased by 18%, which allowed to bring the supplies to a record-breaking 624,26 thousand barrels. a day. However, the third and fourth places in the list of the largest oil suppliers to China have kept Angola and Iraq, increased deliveries by 13%.

According to Reuters, Russia can maintain the status of largest oil supplier of China in 2017, thanks to increased deliveries to ESPO pipeline on the background of the planned (in the framework of the agreement OPEC and non-cartel countries) cuts oil production in Saudi Arabia.

“The reduction in [production] OPEC mean that oil producers of the Persian Gulf countries has lost some of its market share, although the majority of the reduction in their supply will have on Europe and the United States. Russia also has a view of the ESPO expansion and supply to China through the territory of Kazakhstan,” — said Michael Meydan from the company Energy Aspects.

During a Monday meeting with Russian President Vladimir Putin, the CEO of Rosneft Igor Sechin announced the company’s intention to increase oil supplies to China to 31 million MT in 2017.