Good news: Russia will cut oil export taxes September. China imports more than 80 million tons a year

As an important global energy supplier, Russia's every move in the oil industry affects the market's "sensitive nerve". Russia's energy ministry announced a major piece of good news. The country decided to cut the export tax on oil to $64.6 per ton (about 418 yuan/ton) September 1.

As countries around the world scramble to revive their economies, demand for commodities such as oil is also rising. Among them, the U.S. is looking for oil imports Russia despite its ongoing conflict with Russia due to its own lack of oil production capacity.

In May, the U.S. bought 277,000 barrels a day Russia, up nearly 50% 185,000 b/d in January, the data showed. As a matter of fact, the amount of crude oil that the U.S. buys Russia is that much, but the outside world is shocked that the U.S. buys Russia more crude oil than its little brother Saudi Arabia (255,000 b/d supply chain to the U.S.), is second only to Canada.

Of course, this is also due to the increase in Russian crude oil production. In July, Russian crude oil production exceeded 44 million tons to 44.24 million tons, up 11.5 percent year on year. During the month, 18.69 million tons of crude oil was exported. The windfall comes as the Organization of the Petroleum Exporting Countries (Opec) has reached an agreement with Russia to increase production by 400,000 barrels a day (b/d) starting in August. Russia expects to increase its oil production by 21 million tons between 2021 2022.

It is worth mentioning that Russia has also maintained friendly relations with Chinese buyers over the years. Data show that In 2020, Russia exported 83.57 million tons of crude oil to the Chinese market, averaging about 1.67 million barrels per day, an increase of 7.6% year on year. However, since 2019, Saudi Arabia has surpassed Russia to become the largest source of crude oil supply to China (84.92 million tons of crude oil exported to China), while Russia only ranked second.

However, the status of China's crude oil import market has changed, Russia does feel discouraged, because the sino-Russian economic cooperation "good play" is still ahead. Russia has high hopes for our country's dependence on imported gas. Russian data showed that gazprom produced 298.2 billion cubic meters in the january-July period, a jump of more than 18 percent the same period last year. Russia's natural gas supply to China is also increasing thanks to the Power of Siberia pipeline.

China imported 68.96 million tons of natural gas in the first July of this year, up 24 percent the same period in 2020, according to data released by the General Administration of Customs. Faced with strong demand Chinese customers, Russia has made it clear that it will secure gas supplies to China. It is estimated that Russia's pipeline gas supply to China will increase by more than 50 percent by the end of 2021, according to British media.

Since its operation in 2019, Russia has delivered more than 10 billion cubic meters of natural gas to China through the East-route pipeline. In the first half of this year, gazprom's gas export revenues topped $20 billion (about 129.5 billion yuan), up more than 70% the same period in 2020, thanks to its natural gas deals with China.

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Source: International Oil network