(Ecofin Agency) - Chinese demand for Angolan oil, which is cheaper and considered to offer steady supply, is expected to accelerate this month as the refinery preservation period is over.
The Southern African nation was China's largest crude oil supplier for the second time in September, overtaking Russia.
China imported 4.19 million tonnes of oil from Angola last month, compared to the 45.8% from a year ago. According to a Reuters’ survey for September, the amount of crude oil being shipped from ports on Africa's west coast was expected to reach a five-month high that month, partially caused by trading houses like Trafigura and Gunvor.
During the first seven months of the year, Chinese imports of Angolan oil increased 18% to 26.94 million tonnes or 923,200 barrels per day, making Angola the third largest supplier after Saudi Arabia and Russia. While for the nine month till September, Angola was also China's third-largest supplier. Imports increased by 17.7% to 916,229 bpd during this period.
Imports from Russia dropped by 2.14% year-on-year in September at 962,620 bpd. Saudi Arabia supplied 949,500 bpd, a decrease of 1.29%, Reuters reports.
Angola was the largest African oil producer for the first half of this year, with 1.775 million barrels of crude oil a day, more than the 1.468 million barrels a day in Nigeria, according to the Organization of Petroleum Exporting Countries (OPEC).
A recent International Energy Agency (IEA) report predicted that Angola will continues to lead oil production in Africa until 2020.
Anita Fatunji