China's purchases of Russian oil reached record levels
Demand for oil from Russia by Chinese refineries is driven by a large discount
The volume of oil imported to China by sea from Russia may reach a record high this month, as refineries take advantage of lower prices amid rising demand for fuel.
Source. Reuters
Large-scale purchases from China, as well as high demand in India, are driven by a significant discount, despite which Moscow continues to receive revenue from the sale of raw materials even after Western countries have imposed a price on Russian oil.
"Price rules everything," said one purchasing manager at a Shandong refinery.
Tanker tracking companies Vortexa and Kpler estimate that China will receive about 43 million barrels of Russian oil in March, including at least 20 million barrels of ESPO Blend and 11 million barrels of Urals crude.
The previous peak of sea supplies of Russian oil to China was recorded in June 2020 at 42.48 million barrels, the data showed.
Demand for Russian oil from Chinese refineries is driven by price attractiveness: Urals for March delivery was trading at a discount of $13 per barrel.
According to traders, the discount increased to $14 per barrel for cargoes for delivery in April, making Russian crude $2 cheaper than oil of similar quality from Oman.
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