China has become more active in purchasing Russian oil due to disputes with Iran – Kommersant

Private oil refineries in China have become more active in purchasing oil from Russia due to disputes over oil prices with Iran, reports Bloomberg with reference to traders. According to them, 3.8 million tons of fuel that arrived in February were sold out in two weeks. Tehran raised fuel prices in early December.

Purchasing Russian oil has become more profitable since Moscow has lowered prices for it via the Eastern Siberia-Pacific Ocean (ESPO) oil pipeline, the agency writes.

Private Chinese refineries, as Bloomberg notes, benefit from purchasing oil from countries that others have refused to cooperate with due to the risk of sanctions. According to the agency, in December 2023, more than 90% of ships transporting oil from ESPO were heading to China.

In early January Reuters wrotethat Iran has increased the price of oil for China, causing fuel trade between the countries to come to a standstill. Buyers, according to the agency, are trying to negotiate a price reduction.

Read more about Russian oil supplies in the Kommersant article. “Oil will overwinter in Turkey”.

Petr Buzlaev