China’s crude oil import from Saudi Arabia almost doubled in May year-on-year to all-time high as refineries managed to supply their refinery with cheap fuel while the Saudi Arabia remains as the biggest supplier to the world’s biggest oil buyer countries. Crude oil arrivals from Saudi Arabia reached 9.165 million ton in May, or an average of 2.16 million barrel/day, up about 71% from 1.26 million barrel/day in April, and up 95% from 1.11 million barrel/day in May 2019.
The refineries have increased the throughput to meet fuel demand in the recovery phase, but also upped their crude storage to take advantage in catching more cheap prices offered after the pandemic pummeling global crude oil demand. China’s crude storage is estimated to have reached an all-time high of 782 million barrels, with the national total capacity is around 61% full.
Overall crude oil imports to China up by 19.2% year-on-year in May from 2019 to the highest monthly level on record in reason of spiked demand while the country is in the recovery phase from the pandemic.
China’s refineries received their first crude cargo in May, a 550,000 barrels from the U.S since November. After that, China will mark a record amount of US crude oil in July as the bargain hunters' loot from April’s U.S crude price nosedive will get delivered. Shipment from Russia in May increased to 7.71 million tons or 1.82 million barrel/day compared year-on-year from 1.5 million barrel/day and 1.75 barrel/day in April 2020. Even though the relation between U.S and China is on fire and the latest U.S trade sanctions for China exports has been countered by retaliation tariff on the same percentages, China has been hesitating to import from Venezuela and Iran, since the shipment from both countries nearing record lows.
