China's oil imports led by Russia for first time since Ukraine war

BEIJING -- China in May imported more crude oil from Russia by volume than from any other country for the first time since December, before the invasion of Ukraine, capitalizing on deeply discounted prices as Western buyers steer clear.

The country brought in 8.41 million tons of crude from Russia and 7.81 million tons from Saudi Arabia, the previous leader, according to official data released Monday. The Russian tally jumped 55% on the year, the sharpest increase since October 2018, compared with a 9% rise for Saudi oil. The two combined accounted for 35% of China's oil imports for the month.

Saudi Arabia still beat out Russia in value terms, reflecting the relative cheapness of Russian oil. Chinese imports from Saudi Arabia grew 80% or so to $6.3 billion while imports from Russia more than doubled to just under $5.8 billion.

Western import bans on Russian oil over the Ukraine conflict have cut into demand for the country's petroleum, bringing down prices to levels that other buyers find attractive as energy prices elsewhere soar.

A scramble for replacement crude supplies has driven prices higher for Middle Eastern oil, for example. Free-on-board prices for Arab Light crude, which many Japanese companies import under long-term contracts, surged to their highest point since 2012 last month.

Crude oil makes up more than half China's goods imports from Russia by value, providing Moscow with a source of cash that undermines the effectiveness of Western sanctions.