China’s state-owned oil majors have stepped up Russian imports in a sign that Beijing is ready to give the go-ahead for more purchases of the country’s crude, according to industry consultants Energy Aspects. PetroChina Co. and CNOOC Ltd. recently resumed imports of waterborne Russian oil, with at least three supertankers of Urals-grade crude signaling China as a destination, EA analysts wrote in a note, without saying where they got the information. China Petroleum & Chemical Corp., or Sinopec, may also increase its intake of the flagship Urals in the coming months, the analysts said. Chinese state refiners have kept a low profile when it comes to Russian purchases, and have been waiting on the sidelines to increase imports of grades such as Urals due to the lack of clear instructions from Beijing, according to EA’s Feb. 8 note. Now, the Chinese government is ready to allow more majors to procure Russian crude loaded in Europe, the analysts wrote. Separately, private refiners known as teapots have continued to buy Russia’s ESPO and Sokol grades after a short hiatus in early December to resolve issues stemming from banking and insurance after the Group of Seven price cap. China’s daily oil imports from Russia could increase by as much as 500,000 barrels this year to about 2.2 million barrels. That could rise to 2.5 million barrels if Beijing decides to take more Urals to refill its commercial or strategic petroleum reserves. NN: China is on a roll. They are not sleeping like US politicians. As we speak they are putting out tenders to refill their strategic oil reserves. WHY? Because they know prices right now are the lowest they are going to be.
Sinopec Among China’s Oil Giants Seeking More Russian Imports
China’s state-owned oil refining giants are speeding up purchases of Russian crude, citing the allure of cheap cargoes from the OPEC+ producer as demand recovered after Covid Zero was ditched. China Petroleum & Chemical Corp., or Sinopec, as well as PetroChina Co. and CNOOC Ltd. have started and will continue to ramp up their procurement of Russian grades in the coming months, said people with knowledge of the matter, who asked not to be identified as the information is private. Shipments purchased include flagship Urals, which ships from Russia’s distant western ports, as well as ESPO, which loads from pacific terminals. This marks a significant shift in the attitude of so-called Chinese oil majors toward Moscow, opening the flood gates for Russian crude and fuels to infiltrate more parts of Asia’s no. 1 refining nation. China and India have been the top two buyers of Russian crude since the European Union slapped an initial round of sanctions on Russia over the war in Ukraine. Chinese state-owned refiners have erred on the side of caution since then, while private refiners doubled down on cheap oil from the OPEC+ producer. NN: I told you so. China ain’t fucking around here. After all they are the king of the South…