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Chinese refineries secured at least 15 new cargoes of Russian crude for October and November, ranging from 700,000 to 1 million barrels.
Russia’s President Vladimir Putin and China’s President Xi Jinping
Chinese refineries secured at least 15 new cargoes of Russian crude for delivery in October and November, CNN reported citing analysts who believe that shifting trade flows have opened fresh opportunities for the world’s second-largest oil consumer. The shipments, each ranging from 700,000 to 1 million barrels, are set to load from Russia’s Arctic and Black Sea ports, it was reported. These routes have traditionally supplied other markets rather than China due to their distance but are now being redirected amid changing global demand.
Muyu Xu, senior crude oil analyst at commodities tracker Kpler, told CNN that China’s state-owned and private refiners had already booked 13 cargoes for October and a further two for November. She told the outlet, “This is an opportunistic move. Russian oil remains at least $3 a barrel cheaper than Middle Eastern alternatives. Taking advantage of this opportunity while prices are low, more refineries may consider buying within the next week or two.”
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Trade Pressures And Pricing
Since Moscow’s invasion of Ukraine in 2022, China has become one of the main outlets for Russian crude shunned by Western buyers. Discounted Russian oil now accounts for 13.5% of China’s imports, according to energy consultancy Vortexa. Last year, China bought $62.6 billion worth of Russian petroleum and crude, UN data shows.
Read more: ‘More Pressure, More Cooperation’: Russia Says Oil Ties With India Not Impacted Amid Trump Tariffs
The latest purchases follow US President Donald Trump’s meeting with Russian President Vladimir Putin last week. Donald Trump told Fox News that while he was not immediately considering tariffs on China over its Russian oil imports, he may revisit the issue “in two or three weeks”. For now, analysts believe the threat of further US measures is not deterring Chinese refiners.
“Over the short term, China still sees a very good window,” Muyu Xu said.
Limits To Expansion
Despite the surge in buying, analysts caution that China cannot fully absorb all the volumes Russia is struggling to place elsewhere. Muyu Xu noted that China currently imports about 1.2 million barrels per day of Russian seaborne crude- a figure unlikely to grow enough to offset declines in other markets.
“If those other buyers continue holding back, that’s going to be a real problem for Russia. China simply can’t take on all of that volume by itself,” she said.
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