After the US imposed sanctions on Rosneft and Lukoil, Chinese state oil majors have suspended purchases of Russian oil shipped by sea. Reuters reports.
PetroChina, Sinopec, CNOOC and Zhenhua Oil, fearing the consequences of US sanctions, will refrain from buying Russian seaborne oil, at least in the short term. The decision comes as Indian refiners also plan to significantly reduce their imports of Russian crude due to US sanctions.
China currently receives about 1.4 million barrels of Russian oil per day by sea, most of which is purchased by independent refiners. They may also temporarily halt purchases to assess the impact of the sanctions, the sources said, but are likely to seek to resume imports in the future.
China also imports about 900,000 barrels of Russian oil per day through pipelines. Experts estimate that this volume will not be significantly affected by the new restrictions. Sanctions against Russian energy companies are expected to change the supply structure, with India and China increasingly buying oil from the Middle East, Africa and Latin America, which could push up global prices.
According to traders, “Rosneft” and “Lukoil” currently sell most of their oil to the Chinese market through intermediaries, rather than directly to buyers. At the same time, several traders said that independent Chinese refiners, despite a temporary pause, are looking to resume purchases of Russian oil after assessing the impact of the sanctions.
