Saudi Arabia Remains China’s Top Oil Supplier

An engineer is seen at an oil complex on the coast of the Arabian Gulf, 200 km north of Dammam, Saudi Arabia. (Aramco)
An engineer is seen at an oil complex on the coast of the Arabian Gulf, 200 km north of Dammam, Saudi Arabia. (Aramco)
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Saudi Arabia Remains China’s Top Oil Supplier

An engineer is seen at an oil complex on the coast of the Arabian Gulf, 200 km north of Dammam, Saudi Arabia. (Aramco)
An engineer is seen at an oil complex on the coast of the Arabian Gulf, 200 km north of Dammam, Saudi Arabia. (Aramco)

Saudi Arabia remained China's top supplier with volumes of 73.76 million tons, similar to the same period last year.

Saudi shipments rose 12 percent from a year earlier to 7.93 million tons, or 1.87 million bpd, versus September's 1.83 million bpd.

China’s oil imports from Russia jumped 16 percent in October from the same month last year to just behind top supplier Saudi Arabia, as state-run firms stocked up before a European embargo over Russia’s invasion of Ukraine kicked in.

Supplies from Russia, including oil pumped through the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totaled 7.72 million tons, data from the Chinese General Administration of Customs showed on Sunday.

That amount, equivalent to 1.82 million barrels per day, was steady from September but off May’s record of nearly 2 million bpd.

State-run traders including Unipec, Zhenhua Oil, and Chinaoil ramped up imports of Russian Urals, loaded mostly from European ports, before winding down purchases in recent weeks in the face of imminent EU sanctions and uncertainty surrounding a Group of Seven plan to cap Russian oil prices.

January-October Russian supplies rose 9.5 percent on year to 71.97 million tons, helped by refiners’ consistent appetite for the discounted oil.

Arrivals of crude oil from the United States jumped more than fivefold in October from a year earlier, as refiners took advantage of lower prices amid a surge in US exports from rising output and stockpile releases.

Malaysia, which for the past two years has been a transfer point for shipments originating from Iran and Venezuela, almost doubled in the year to 3.52 million tons.

No imports were recorded from Venezuela or Iran.

On Friday, oil prices dropped by two percent due to concerns about weakened demand in China and further hikes in US interest rates.

Brent crude settled at $87.62 a barrel, falling $2.16 or 2.4 percent, while US West Texas Intermediate crude settled at $80.08 a barrel, losing $1.56 or 1.9 percent.

Brent was down 9 percent and WTI was 10 percent lower.

A stronger US dollar, which makes oil more expensive to non-American buyers, pushed down crude prices.

The market structure of both oil benchmarks shifted in ways that reflect dwindling supply concerns.

Crude came close to record highs earlier this year as Russia's invasion of Ukraine added to those worries.

In addition, the front-month futures contract soared to a gigantic premium over later-dated contracts, a signal that people were worried about the immediate availability of oil and were willing to pay handsomely to secure supply.

Those supply concerns are waning.

The current WTI contract is now trading at a discount to the second month for the first time since 2021, Refinitiv Eikon data showed.

This condition will also benefit those looking to put more oil in inventories for later, especially with stocks still at low levels.

Brent was still in the opposite structure, backwardation, though the premium of nearby Brent over barrels loading in six months fell as low as $3 a barrel, the lowest since April.



Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

 People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
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Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

 People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)

Turkish stocks jumped on Monday, bonds climbed and the lira rallied against the euro as news the Kurdistan Workers Party (PKK) militant group was ending its four decade-long insurgency in the country added to US-China trade cheer.

Global share markets were enjoying a strong surge after the US and China agreed to slash tariffs, but Turkish equities outstripped most other bourses as they jumped more than 3%.

A PKK member said it was ceasing all military operations "immediately" following the group's decision to disband, a move that could boost NATO member Türkiye's political and economic stability.

The lira was up 1.3% against the euro and steady against the dollar, while its international market bonds, which have been losing ground for the last six months, were up nearly 0.7 cents.

The PKK decision followed an appeal from its jailed leader Abdullah Ocalan in February to disband. It is set to have far-reaching political and security consequences for the region, including in neighboring Iraq and also in Syria, where Kurdish forces are allied with US forces.

Omer Celik, spokesperson for President Recep Tayyip Erdogan's ruling AK Party, said the PKK's decision to dissolve was "an important step toward a terror-free Türkiye".

There have been intermittent peace efforts over the years, most notably a ceasefire between 2013 and 2015 that ultimately collapsed.

The PKK's move should now give Erdogan the opportunity to boost spending in the mainly Kurdish southeast of Türkiye, where the insurgency has handicapped the regional economy for decades.

Analysts welcomed the PKK move but added a note of caution.

"It can only be good news," said Christopher Granville, managing director of EMEA & Global Political Research at investment advisory firm TS Lombard. "But is it decisive for the difficult Turkish investment case?"

He said the PKK issue was ultimately "secondary" to questions about Türkiye's recent arrest of Erdogan's main political rival, Istanbul Mayor Ekrem Imamoglu, and the broader direction of its macroeconomic policy.

Those concerns have weighed on Turkish markets this year.

MSCI's Türkiye equities index is down more than 13% compared to a near 8% rise in its pan-emerging market index., while lira-denominated government bonds have cost investors more than 8% on a total returns basis.

The cost of insuring Ankara's government debt using Credit Default Swaps (CDS) has also shot up, although Monday's rally saw that ease back.

"A continuation of the pullback (in CDS levels) ... may support banking stocks, which have been the negatively differentiated sector in BIST (Turkish stocks index) in the last 2 months," Garanti BBVA Yatirim's Director Ozgur Yurtdasseven said.

Turkish banking stocks were up 3.8% on the day, but remain more than 16% down on the year in lira terms and more than 20% in dollar terms.