China depends on foreign oil. The Saudi attack is a wake-up call

Last weekend's drone attack on Saudi Arabian oil facilities sent shockwaves through global energy markets and the price of crude spiking.

While Saudi authorities have pledged that production will soon be back on track and oil prices have fallen, the attack underscored China's particular vulnerability to disruption in oil supplies.

As the world's largest crude oil importer, China's heavy dependence on other countries for energy has influenced much of its foreign policy. Beijing is trying to reduce that dependence, but the needs of its growing economy and a trade war with the United States have put it in an awkward position. It's buying more Saudi oil than it has done for years.

Less American oil, more Saudi oil

China has traditionally purchased the bulk of its oil from Russia, Iran, Saudi Arabia, and the United States. But it has been forced to cut back on at least two of those sources.

Chinese imports of US oil plunged 76% in the first half of 2019 because of the escalating trade war and the threat of tariffs, according to data from customs authorities. Imports from Iran also dropped sharply due to sanctions re-imposed by the Trump administration on countries buying Iranian crude.

That gap has largely been closed by Saudi Arabia. The world's largest oil exporter has become China's biggest supplier in recent months, increasing its share of Chinese imports from 14% in 2018 to 18% so far this year, and overtaking Russia for the first time in more than five years, according to a report by financial data provider Refinitiv.

Last Saturday's attack, which knocked out about half of Saudi oil production, left China worried.

"We are very concerned about the attack's potential impact on the international crude supply and price stability," Hua Chunying, a spokeswoman for China's Ministry of Foreign Affairs, said at a press conference on Tuesday.

(CNN)