the fight for china

The Fight for China Between Saudi Arabia and Russia


The insatiable desire that China has when it comes to finding countries that will sell the country oil appears to have reached a point whereby Russia has replaced Saudi Arabia as its largest foreign supplier.

The information comes from the International Energy Agency, which indicated that the shift came at the end of last year. The supplanting of Saudi Arabia is partly the by-product of the proximity when it comes to geography between Russia and China, which allows for a pipeline of oil to flow into China.

That pipeline began pumping in 2011 and has allowed for exports to increase as much as 550,000 more barrels per day. Prior to that, Russia accounted for only seven percent of China’s oil imports while Saudi Arabia was listed as having 20 percent of that market.

Seeking to keep that edge over the Saudis, Russia has increased the amount of exported oil to China to over 22 million tons in just the first five months of 2016. That’s an increase of nearly 42 percent, according to General Administration of Customs in China.

Those numbers indicate that Saudi Arabia supplied China with 21.8 million tons of oil during the same time frame.

Needing to maintain its market share in the oil industry, Saudi Arabia has taken steps recently to make sure that the country is seen as being flexible. To that end, they signed an agreement in April for a spot sale with an independent Chinese refinery, Shandong Chambroad. Such a step is anything but business as usual for the Saudis, since they’ve usually required a long-term deal to be in place.

One thing is Saudi Arabia’s favor is that their finances aren’t quite as tenuous as Russia, which needs to find any new source for its main export.


  • Saudis Russians Oil Production Cut Extension

    Saudis and Russians Come Together on Oil Production Cut Extension

    The three-year slide of oil prices has delivered a major hit to the financial stature of Saudi Arabia, primarily because of their status as the world’s top oil producer. While that title has seemingly fluctuated in the past year with Russia, the economic punch that those two nations provide has the ability to provide an…

  • saudi arabia equtorial guinea economic forum

    Saudi Arabia and Equatorial Guinea Come Together

    During an economic forum in Jeddah, Saudi Arabia and the West African nation of Equatorial Guinea came to an agreement on May 11 that brings the two countries together on a variety of business projects. One of those is an agreement that will help finance what will be the region’s largest terminal for oil storage….

  • saudi arabia owns largest american oil refinery

    Saudi Arabia Now Fully Owns Largest American Oil Refinery

    Though the impact of Saudi Arabia within the American oil market has been diminished over time, their ability to maintain a very clear presence once again came into focus on May 1. That was when Saudi Aramco, the Kingdom’s state-run oil company, finalized an agreement to take complete control of the largest oil refinery in…