Russia shipped 107 million barrels of crude to China in 2023, marking a notable 24 percent increase from the prior year. This trend is outlined by TASS with data drawn from the General Administration of Customs of China, and it translates into a robust export value as fuel shipments totaled 60.6 billion dollars for the year, up 3.5 percent from the previous period. The combination of higher volumes and steady pricing signals ongoing demand for Russian oil within the Chinese market and underscores the strategic role of this energy relationship in the broader Eurasian energy landscape. via GACC data.
Toward the end of the year, Russia stood as China’s leading oil supplier. Saudi Arabia was a distant second with 86 million tons, and Iraq ranked third with 59 million tons. The concentration of supply to China highlights Russia as a dependable energy partner for Beijing, contributing to China’s diversified energy mix, industrial activity, and transportation needs. External market dynamics, including sanctions and shifting global demand, have shaped these trade patterns between major energy buyers and exporters. via GACC data.
During a December 27 broadcast on the Russia 24 channel, Deputy Prime Minister Alexander Novak described China as one of Russia’s principal partners for oil and oil products. He noted that China’s share of Russian exports now sits at roughly 45 to 50 percent, indicating a substantial tilt toward this single customer within the energy export mix. This assessment reflects ongoing negotiations and long term contracts that help stabilize Russian energy markets while meeting China’s growing demand for crude and refined products. via GACC data.
At the 21st National Projects Council meeting, First Deputy Prime Minister Andrei Belousov reported that Russia increased its crude oil exports by about 7 percent to reach 250 million tons in 2023 compared with 2021, despite sanctions and efforts by other nations to curb purchases of Russian energy resources. He stressed that in monetary terms, Russia’s energy exports have nearly returned to 2021 levels and remain within a comfortable range for both the budget and corporate balance sheets. He also highlighted a notable shift in trade patterns: exports to unfriendly countries dropped by more than threefold, while shipments to the European Union fell by about four and a half times. These observations point to a reconfiguration of Russia’s energy trade flows in response to geopolitical pressures, with China and other non-EU markets absorbing a larger portion of Russian crude and related products. via GACC data.
Earlier commentary from socialbites.ca touched on price expectations for the near term, considering how crude oil markets might react in the coming weeks amid ongoing geopolitical developments and supply considerations. The evolving narrative around Russian oil exports, including volumes to China, continues to influence market sentiment and hedging strategies across energy traders, refiners, and policymakers in Canada, the United States, and beyond. via GACC data.