In spite of the fall in oil revenue, due to the decline in oil prices in the global market as well as the drop in crude oil and petroleum exports, Angola still toppled both Saudi Arabia and Russia in the race to the top spot among exporters to China for the month of July.
Oil is the country’s main source of generating income and according to Chinese customs data, Angola’s oil exports to China hit 4.72 million tonnes or 1.11 million barrels per day in July, signifying a 23.3% increase on a yearly basis.
The increase is as a result of rising demand from Chinese teapot refineries as they tried to take advantage of Angola’s cheap oil which trades below both Russia’s ESPO and the Middle East’s Dubai benchmark blends.
Nevertheless, during the first seven months of this year, Saudi Arabia was on the top spot on the list of China’s suppliers, with a daily rate of 1.05 million bpd. This granted the kingdom a 14% market share in the Chinese oil market, a 0.4% increase over Russia’s exports to China.
In 2015, Saudi Arabia had a 15.1% share of the Chinese oil market, while Russia held 12.6%. Russia’s market share later increased thanks to demands from the same teapot refineries, which the country sold crude oil to at spot prices.
However, demands for crude decreased in August, as the country’s massive capital has put strict restrictions on manufacturing activity and power generation in order to reduce air pollution, Pil Price news reports.