China’s Russian crude imports set record after India cuts back

  • China‘s imports of Russian crude oil hit a February 2024 record of 2.07 million barrels per day, filling the void left by India.
  • Russia is offering discounts of $9 to $11 per barrel, making Chinese refiners the top consumers of sanctioned oil and strengthening BRICS ties.
  • BRICS is challenging the US dollar’s dominance with a new Brazil-based payment system, signaling a shift in global financial dynamics.

In February 2024, China purchased record volumes of Russian crude oil, according to traders and ship-tracking data, after India ceased purchases under a US trade deal. Russian crude oil shipments are estimated to be around 2.07 million barrels a day into China in February alone, surpassing January’s 1.7 million barrels per day.

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Consequently, China has now become Russia’s top client for oil, with shipments discounted by $9 to $11 per barrel. Chinese refiners, including private “teapot” facilities, are the world’s largest consumers of sanctioned oil from Russia, Iran, and Venezuela.

A senior Chinese trader stated, “For the quality you get from processing Russian oil versus Iranian, Russian supplies have become relatively more competitive.” However, China is careful about Iranian oil due to military confrontation, favoring more reliable Russian supplies.

This dynamic strengthens BRICS economic ties as the bloc dominates the oil sector with surplus production and consumers. Meanwhile, BRICS has launched a Brazil-based payment system, challenging the US dollar’s global power.

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