China’s imports of Russian oil soared to a record high in May

China’s imports of Russian oil rose to an unprecedented level in May, as private refineries continued to cheer on Russian Khami Espoo and Ural at reduced prices amid sanctions.

According to data from China’s General Administration of Customs, total oil from Russia was 9.71 million metric tons in May, or 2.29 million barrels per day. 

This represents an all-time high, up 32.4% from April’s total of 1.73 million barrels per day (bpd).

Crude imports from Saudi Arabia totaled 7.32 million tons in May, equivalent to 1.72 million barrels per day, down 16% from 2.05 million barrels per day last month.

In early April, Saudi Arabia and other members of the OPEC + alliance announced sudden production cuts of 1.16 million barrels per day from May. The kingdom cut 430 1,000 barrels per day (bpd) of production in May, according to a Reuters survey published at the end of the same month.

Much of the uptick in demand for Russian crude came from China’s private refineries, including large companies such as Hengali Petrochemicals. The company’s refinery, with a capacity of 400 thousand barrels per day and located in the northeast of Dalian city, received its first shipment of Ural ore in early May of 730 thousand barrels, in addition to a total of 3.71 million barrels of Espoo crude throughout the month, according to ship tracking data.

Smaller private refineries in the coastal province of Shandong also recorded an improvement in their profit margins due to the purchase of sanctioned shipments from Russia, Iran and Venezuela.