China is planning to increase its imports of Brazilian oil to replace the more expensive Saudi Arabian supply, unnamed industry sources have told Reuters.
Deliveries of Brazilian oil will reach nearly a million barrels a day during August and September, the news agency said, with 20 million barrels bought by Sinopec’s trading unit Unipec.
By comparison, China imported just over 729,000 barrels per day during the first five months of the year, according to the country’s customs authorities.
[See more: Sino-Lusophone trade showed a slight yearly decline for the first five months of 2023]
China’s move comes as Saudi Arabia, its second biggest supplier, cut its output and increased its prices for July and August, Reuters reports.
Lower shipping costs and greater output in Brazil have also enabled more oil from the South American country to be sold to China.
China is the world’s leading importer of crude oil.
