According to new data from the Chinese customs service, Russia continues to be the top supplier of crude oil to China in July. Imports of Russian crude arrived at a rate of 1.68 million barrels per day, and reached 7.15 million tons, a 7.6% surge over the same period one year prior. That was however, below May’s record 2 million barrels per day, leading to questions of whether Chinese economic production may be slowing slightly.

Russia’s Chinese deliveries occur through the East Siberia Pacific Ocean pipeline and by seaborne shipments.

China had been increasing its energy imports from Russia. When western sanctions due to the military action in Ukraine shut western markets to Russia’s oil industry, the price of oil soared. Russia merely discounted the higher price somewhat, and offered its product for sale to Asia and India, which jumped on the discounted supply. The result has been record setting deliveries to China.

Saudi Arabia, China’s second biggest oil supplier was responsible for 6.56 million tons of deliveries at a rate of 1.54 million barrels per day in July. Although there was a slight rebound from the previous month, it was still somewhat off the level posted one year prior.

The cost savings of the discounted Russian crude, drove competing suppliers in Angola and Brazil out of the Chinese market. Angola and Brazil deliveries dropped 27% and 58% respectively.

Chinese customs data showed no deliveries from Venezuela or Iran in July. However purchases from Malaysia, which can be used as a transfer point for shipments from those countries, surged 183% to 3.34 million tons over the previous year. In June, China had recorded 2.65 million tons delivered from Malaysia.

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