The oil circulation from the Kremlin was at the highest level since the invasion of Ukraine a year ago. According to data intelligence firm Kpler, the recent oil circulation surpassed a record set in April 2020.
Not only China, but India is standing toe-to-toe with India as these two countries are the biggest buyer of Russian crude oil after the war in Ukraine reshaped the pattern of global energy deals.
Russia had to offer unusual discounts so it can entice a shrinking pool of customers, and these offers pulled buyers from all over the World and especially from Asia as they had to control their inflation.
While according to Keplar’s February 20 data, Russia’s overall crude, as well as fuel oil exports to China, reached a record-breaking number of 1.66m barrels a day last month.
The increment in Chinese buying from Russia is clear evidence that the country reaching its recovery stage after ending its zero-Covid restrictions last year, which should help to lift global oil prices as demand increases.
While Last week, Russia announced that it would cut production by almost 500,000 barrels a day from next month amid a cap on prices imposed by the EU and the G7.