China’s Top Refiner Pivots to Russian Crude
China’s Sinopec, the world’s top refiner by capacity, has boosted purchases of Russia’s Far East crude for delivery in the third quarter as it looks to secure cargo arrivals amid continued shipping constraints in the Middle East. State-run Sinopec has acquired as many as 30-40 shipments, or 241,000 to 320,000 barrels per day (bpd), of Russia's Eastern Siberia-Pacific Ocean (ESPO) for delivery…
China's largest refiner, Sinopec, is shifting its focus to Russian crude oil as it seek to secure cargo deliveries despite ongoing shipping problems in the Middle East. The state-run entity has purchased up to 30-40 shipments, amounting to 241,000 to 320,000 barrels per day, of Russia's Eastern Siberia-Pacific Ocean crude for delivery between July and September.
The ESPO blend, loaded from Russia's Far Eastern port of Kozmino, reaches China's eastern coast refineries in just a week, making it cheaper and faster than alternatives from West Africa and Brazil. Emma Li, a China analyst with Vortexa, noted that China is increasingly favoring barrels with greater delivery certainty and lower freight costs.
Despite China cutting overall crude oil imports amid the Middle East conflict, Sinopec is now resuming purchases of Russia's ESPO crude, avoiding any sanctioned Russian entities. The supply certainty, lower price, and short travel time of Russia's Far Eastern crude are making it an attractive option for Sinopec to bolster its refining capacity until September.
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