SINGAPORE — China’s state-owned oil giant Sinopec has significantly increased its imports of Russian crude oil to compensate for reduced supplies from the Middle East, as ongoing geopolitical tensions and disruptions linked to the Iran conflict continue to reshape global energy trade, according to traders, shipping data, and industry sources.
Reuters reported that Sinopec has purchased between 30 and 40 cargoes of Russia’s Eastern Siberia-Pacific Ocean (ESPO) blend crude for delivery from July through September. The purchases amount to roughly 241,000 to 320,000 barrels per day, equivalent to about 5 to 6 percent of the company’s 5.2 million barrels per day refining capacity.
The increased buying comes as China’s refiners grapple with reduced crude shipments from the Middle East following months of supply disruptions associated with the conflict involving Iran. Saudi Arabia, traditionally one of Sinopec’s largest suppliers, has sharply reduced deliveries to the Chinese refiner.
According to Reuters, Sinopec’s Saudi crude imports fell dramatically from around 20 million barrels in March and April to just 2 million barrels scheduled for August, prompting the company to seek alternative supplies.
Industry sources said Russian ESPO crude has become an attractive replacement because it is both cheaper and logistically advantageous. The grade is reportedly trading at a discount of about $1 to $2 per barrel against Brent crude, making it roughly $10 per barrel less expensive than comparable cargoes from Brazil or West Africa. In addition, shipments from Russia’s Far East require significantly shorter transit times to China than supplies from more distant exporters.
Reuters also reported that Sinopec resumed purchasing Russian oil earlier this year after a temporary U.S. sanctions waiver created additional flexibility in global oil markets. Although that waiver has since expired, recent purchases have reportedly been arranged through intermediaries that are not subject to sanctions, with transactions conducted in Chinese yuan.
China’s broader crude oil imports have also reflected the impact of the Middle East conflict. Imports from Gulf producers fell sharply in recent months as higher prices and supply disruptions reduced purchasing volumes, reinforcing Beijing’s strategy of diversifying its energy sources.
The shift underscores China’s efforts to strengthen energy security by expanding purchases from Russia while reducing its dependence on Middle Eastern crude during periods of geopolitical instability. Analysts note that Beijing has increasingly relied on Russian supplies since the outbreak of the Ukraine conflict, while also maintaining large strategic petroleum reserves to cushion against external supply shocks.
The developments come as uncertainty persists over shipping through the Strait of Hormuz, one of the world’s most important oil transit routes. Any prolonged disruption in the waterway could further tighten global crude supplies and encourage major importers such as China to deepen their reliance on alternative suppliers, particularly Russia.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
