According to the General Administration of Customs, the world's largest oil importer imported 50.89 million metric tons of oil in November, equivalent to 12.38 million barrels per day (bpd), up 5.24% from October.
Points of attention
- China, as the largest importer of Russian oil, has increased purchases at significant discounts due to sanctions on oil supplies from Russia and Iran.
- The East Asian oil market is witnessing a record price discount for Russian ESPO oil, leading to an upsurge in demand and imports by Chinese refineries.
- Sanctions on oil supplies have caused a notable drop in raw material prices, prompting more refineries to apply for advance import quotas in China.
China buys Russian oil at significant discounts
From January to November, China imported 521.87 million tons of crude oil, up 3.2% from the same period last year.
Domestic demand has experienced a seasonal decline, but sanctions on oil supplies from Iran and Russia have led to a significant decline in raw material prices, which has increased refining margins and prompted more refineries to apply for advance import quotas for the first batch in 2026, the report said.
Sanctions have forced Russia to make significant discounts on oil for China. Russian Far Eastern ESPO oil for December loading is being sold at a discount of $5-6 per barrel in Chinese ports compared to Brent, Reuters also writes, citing sources.
This is the largest discount on this type of oil for China in the entire history of observations, Reuters reports. At the end of October, the discount on Russian ESPO oil was only $0.5-1 per barrel.
At the same time, some ESPO Blend cargoes that were loaded in December have still not found buyers, the agency's sources report, calling this situation unusual.
Discounts on Russian oil in China have increased due to falling demand after state-owned refineries suspended purchases due to Western sanctions, and private players began to be more cautious about their sources of raw material supply.
More on the topic
- Category
- Economics
- Publication date
- Додати до обраного
