InvestorQ : Is it true that Saudi Arabia is now becoming a major partner to supply oil to China?
Arti Chavan made post

Is it true that Saudi Arabia is now becoming a major partner to supply oil to China?

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Rutuja Nigam answered.
3 weeks ago
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In the latest month of February, Saudi Arabia has fallen to third position in terms of oil supply to India. For a very long time, Saudi Arabia has been the second largest supplier of oil to India after Iraq. What has changed recently is that the US has emerged as the second largest supplier of oil to India, pushing Saudi Arabia to the third spot.

However, there has been a Plan-B that been actioned by Saudi Arabia as they are now increasing looking to deepen their partnership with China as an oil supplier. It was quite evident that Saudi Aramco was warming up to China. In fact, speaking at the China Development Forum, Saudi Aramco CEO, Amin Nasser assured that China's energy security would be Saudi Arabia’s highest priority in the next 50 years.

Even as the US has relegated Saudi Arabia to third positions, Saudi Arabia has relegated Russia to second position in terms of supply of crude to China. While Russia was the top crude supplier to China till 2019, it is Saudi Arabia in 2020. China is already the world’s largest importer of crude and Saudi is looking to hedge its bets.

In addition, Saudi Arabia will also look to reduce its dependence on fossil fuels gradually and they hope to cooperate with China on that front. Saudi Aramco is also looking to partner China in carbon neutrality by 2060. Aramco will expand research collaboration with China in blue hydrogen, ammonia and carbon-capture technologies.

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