While China’s oil and gas imports from the Gulf states fell in April amid the Strait of Hormuz crisis during US-Israel war against IranExports from Russia have given Beijing a buffer for its growing economy.
Russian crude exports to China rose 11.3 percent year-on-year to nearly 9 million tons in April, according to Chinese customs data released on Wednesday.
But the market conditions have also changed. Much of the discount on Russian oil and gas – a long-time source of cheap energy for Beijing – has been reduced for a long time. closure of the Strait of Hormuz.
Month-on-month, the value of China’s crude products from Russia rose 16.2 percent in April in US dollar terms, despite a 10.8 percent decline.
International demand for Russian barrels has increased after the United States introduced a temporary embargo on oil already loaded on tankers to stabilize the global energy market. On Monday, Washington announced another 30-day extension of the amnesty.
Additional demand has increased competition for Russia’s available supply, and more buyers are now chasing the same barrels.
“Russian oil is trading at the same price as Brent, even at a discount,” said Chim Lee, senior analyst at the Economist Intelligence Unit.
