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Saudi Arabia
ChinaDiplomacy

Drone strikes in Saudi Arabia may push China to diversify oil supply, analysts say

  • Country has become increasingly reliant on crude from the gulf state over past year as it reduced imports from suppliers like the US and Iran
  • That could leave Beijing in a precarious position, according to experts

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A satellite image shows thick black smoke rising from Saudi Aramco’s Abqaiq oil processing facility in Buqyaq after the drone strikes on Saturday. Photo: Planet Labs via AP
Simone McCarthy
Drone attacks on two Saudi Arabian oil facilities over the weekend – which knocked out half of the country’s output and 5 per cent of the global supply – could push China to diversify its oil import partners, experts say.

China, the world’s largest importer of crude oil, has grown increasingly reliant on Saudi crude over the past year, official figures show, as it has reduced imports from other large suppliers like the United States and Iran in recent months amid trade tensions with Washington and US sanctions on Iran.

The gulf state – which was the victim of attacks on the Abqaiq processing facility and the Khurais oilfield on Saturday, claimed by Yemen’s Houthi rebels – is China’s second largest source of crude oil after Russia, supplying the fuel-hungry country with over a million barrels a day.
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Saudi Arabia exports 7 million barrels of crude oil daily, according to Reuters.

For now, Beijing is monitoring the situation, with a spokesperson for the National Bureau of Statistics on Monday saying the overall impact “remains to be seen”.

Analysts agreed it was too early to tell what impact the attacks would have on China’s crude oil supply as it depended on how quickly Saudi Arabia could get a large proportion of its damaged oilfields back online. But concerns over instability and the length of time the oil facilities remained down could prompt Beijing to look for alternatives, they said.

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