Chinese oil refiners are refusing to buy oil from the aggressor country russia after the West imposed sanctions on russian oil giants Rosneft and Lukoil.
Bloomberg reported this, citing its own industry sources.
Unnnamed traders told reporters that Sinopec and PetroChina canceled some cargoes of russian oil after new sanctions against russia.
Small private refiners are also refraining from buying russian oil. They fear similar sanctions imposed by the European Union and the United Kingdom on Shandong Yulong Petrochemical
Among the russian oil grades affected by this is the widely popular ESPO grade, whose prices have plummeted. According to analysts at Rystad Energy, a consulting company, about 400,000 barrels per day were affected by the actions of Chinese refiners. This is about 45% of the total volume of russian oil imports to China.
Russia has strengthened its position as China's largest foreign supplier, partly because its oil is sold at a big discount due to sanctions. The US and its allies are currently tightening these sanctions on both russian producers and their customers. China is the largest importer of crude oil in the world, and any restrictions on supply from its neighbor are likely to benefit other suppliers.
This may include the United States, which agreed to a landmark trade truce with China the day before. In a recent meeting, President Donald Trump and President Xi Jinping were able to establish rules for trade in goods such as semiconductors, rare earth metals, and soybeans. What to do with russian oil was not mentioned in public statements. This only increased confusion in the market.
As the Ukrainian News agency earlier reported, yesterday, November 2, Reuters wrote that oil refineries in Turkey started to refuse oil from russia more often, preferring raw materials from other suppliers.
We also wrote that the Bulgarian authorities decided to stop exporting oil products to the European Union due to sanctions against the russian company Lukoil.
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