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illuminem summarizes for you the essential news of the day. Read the full piece here in The Financial Times or enjoy below
🗞️ Driving the news: China is importing record volumes of oil, leveraging cheap Russian crude to build stockpiles and export refined products, despite a weak economy
• The first half of 2023 saw China import 11.4 million barrels of crude oil per day, a 15.3% increase compared to pre-Covid levels
🔭 The context: The surge in oil imports, particularly from Russia, reflects the impacts of sanctions on Russia following its invasion of Ukraine
• These sanctions enabled China to procure cheap oil and enhance its export capabilities
• Russia has surpassed Saudi Arabia as China's top crude supplier so far this year
🌎 Why does it matter for the planet: The increase in China's oil imports and exports amid a faltering economy and geopolitical tensions could reshape global oil markets
• The situation highlights the ongoing concerns about energy security and the influence of sanctions and geopolitical events on international trade and economy
⏭️ What's next: Market data provider Kpler expects that China's access to cheap Russian crude oil will enable it to increase its exports and potentially put pressure on other Asian producers like Korea and Japan
💬 One quote: "The short answer is crude stocks have been building in ChinaThey’re importing for the future...and in advance of a potential stimulus. People are all talking about a second-half story." (Mukesh Sahdev, head of oil trading at Rystad Energy)
📈 One stat: In June 2023, China imported 2.57 million barrels per day (bpd) of Russian crude, breaking a previous record set in May
• Over the first half of the year, China's imports from Russia reached 2.13 million bpd, surpassing the 1.88 million bpd from Saudi Arabia
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