Purchases of Urals oil by Chinese refineries fell significantly in December 2022, but have since recovered and are showing growth.
China’s largest refiners PetroChina and Sinopec have resumed buying Russian oil at a discount after a brief pause at the end of 2022. This was reported on February 15 by Reuters.
It was noted that after the introduction of the EU embargo, Russian Urals oil was sent to India and China at reduced prices.
“China’s state-owned refineries have received permission from their headquarters to buy Russian oil from trading companies at deep discounts, which will greatly reduce the cost of the largest oil importer in the world and will increase refining margins,” the agency asserted.
PetroChina will receive about 1.5 million barrels of Urals crude later this month aboard Aframax NS Arctic and Crudemed tankers, according to Reuters.
The refinery last imported 730 thousand barrels of Russian oil in October and November.
Unipec, a trading arm of Asia’s leading refiner Sinopec, also intends to resume imports, although it is not yet clear what volumes are being bought and where they will be delivered.
It pointed out that Unipec was one of the biggest buyers of Russian crude oil last year, when Western countries refused to trade with Russia after its invasion of Ukraine.
PetroChina and Unipec buy Russian oil through intermediaries, allowing them to bypass sanctions imposed by the G7, the European Union and Australia, agency sources said.
Urals oil imports to China fell to 1.45 million barrels in December from a peak of 9.67 million barrels in August, according to Kpler. But it rebounded in January and is expected to increase in the coming months.
Earlier it was reported that India has become a leading buyer of Russian Urals oil, filling the niche left by European buyers after the imposition of sanctions.
It will be recalled that on December 5, 2022, a ban on the import of oil from the Russian Federation by sea was implemented.
In addition, more than 30 countries around the world have set a price ceiling for oil from Russia at $60 per barrel.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.