According to new data, China cut its purchases of Russian oil by 14% in June compared to May, as zero-COVID lockdowns hit the economy.
According to data issued Wednesday by the General Administration of Customs, China imported 7.28 million tons of crude oil from Russia last month, a steep decrease from 8.42 million tons in May.
In financial terms, China purchased $5.05 billion in crude oil from Russia in June, down from $5.85 billion the previous month. However, China’s imports remained greater than a year ago. Due to decreased pricing, the government purchased 6.65 million tons of Russian oil in June 2021 for $3.33 billion.
Beijing has set an annual economic growth target of 5.5 percent this year. On the other hand, analysts predict that growth will be closer to 4%.
COVID lockdowns in big cities such as Shanghai have recently lowered energy demand.
The European Union is reducing its purchases of Russian crude oil. At the same time, China and India have increased their purchases significantly, keeping money streaming into Moscow’s coffers as it wages war in Ukraine.
Russia’s oil deliveries to China and India have dropped 30% from their previous peak.
In June, Chinese import volumes fell overall. Crude oil imports totaled 35.23 million tons, a 30% decrease from 45.82 million tons in May.
Asian palm oil buyers replenish inventories
Asian importers are increasing their purchases of palm oil to refill supplies after prices fell to their lowest in a year, and leading supplier Indonesia removed export duties.
Leading Asian importers such as India, China, and Pakistan may purchase Malaysian palm oil futures, which plummeted to a year low last week.
It will also assist Indonesia in reducing inventories that grew following its export embargo earlier this year, putting downward pressure on local prices and squeezing farmer incomes.
Price instability in recent weeks has caused refiners, distributors, and wholesalers to reduce purchases, resulting in low pipeline supplies in the distribution network.
Prices rose to 7,268 ringgit in March due to the export ban and a near-halt in sunflower oil shipments from leading supplier Ukraine due to its conflict with Russia.
The market anticipates more supplies from Indonesia, which eliminated its export tariff on all palm oil products last week until August 31 to stimulate exports and reduce large stocks.
Even ESG Funds are now buying Big Oil stocks
After years of dismissing and demonizing the oil and gas industry as the primary cause of rising global temperatures, some investors are finally warming to the sector, realizing that the worldwide giants will play a part in the energy transition.
Years of underinvestment in new supply, the energy crisis, and Russia’s invasion of Ukraine have brought energy security and affordability to the forefront. As Europe scrambles to prevent gas and energy rationing in three months. Some investors have learned that oil and gas companies that invest in clean energy technology should not be dismissed as unsuitable for their righteous environmental, social, and governance (ESG) criteria and portfolios.
Energy has been the highest performing sector in the S&P 500 index year, owing to high oil and gas prices in the aftermath of Russia’s invasion of Ukraine and mounting concerns about energy security. According to market data compiled by Yardeni Research, energy is not only the largest gainer but also the only sector that has gained so far this year. By July 18, the S&P 500 energy sector has gained 26.5 percent year to date. The S&P 500 has been down 19.6 percent since January, and all other sectors have also lost ground.The integrated oil and gas subsector in the energy sector has increased 34.4 percent year to date.
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