Reuters: Chinaʼs largest refiner increases purchases of Russian oil due to disruptions from the Middle East

Chinaʼs state-owned “Sinopec Corporation”, the worldʼs largest oil refining company, has increased purchases of Russian oil to compensate for reduced supplies from the Middle East.

This was reported by Reuters, citing sources and data on the movement of ships.

According to the agency, Sinopec has purchased 30 to 40 batches of Russian ESPO oil for delivery in July-September. This amounts to approximately 241 000 to 320 000 barrels per day, or 5-6% of the companyʼs refining capacity.

Thanks to cheaper Russian oil, compared to grades from Brazil or West Africa, the company was able to maintain stable refining volumes and export surplus fuel at high margins.

Reuters notes that “Sinopec” received about 7.4 million barrels of Russian ESPO crude in July, most of which was delivered to the port of “Rizhao”. The company also bought at least 10 batches for August and September, according to traders.

Before the US war on Iran, “Sinopec” got almost half of its oil from the Middle East, with Saudi Arabia being one of its biggest suppliers. However, the company did not buy any Saudi oil in June and July, and imported only 2 million barrels in August, compared with about 20 million barrels in March and April.

According to Reuters, “Sinopec” resumed purchases of Russian oil in March and April after the US granted a temporary exemption from sanctions. The agencyʼs interlocutors claim that current deliveries are made through intermediaries and payments for Russian oil are made in Chinese yuan.

• After the start of Russiaʼs full-scale war against Ukraine, China and India became the largest buyers of Russian oil. At the same time, in October, state-owned Chinese oil refineries, including “Sinopec”, suspended purchases after the US imposed sanctions on “Rosneft” and “Lukoil”.

For more news and in-depth stories from Ukraine, please follow us on X.