Chinese oil companies are urgently buying oil due to sanctions against Russia
Kyiv • UNN
Chinese state-owned oil companies are buying crude oil from the Middle East and other regions in large quantities. This is due to fears of supply disruptions after new sanctions against Russia and Iran.
Chinese state-owned oil companies and refineries are buying crude oil cargoes from the Middle East and other countries, preparing for possible supply disruptions due to recent sanctions against Russia and Iran. Bloomberg writes , UNN reports .
Details
Companies including Cnooc, Shandong Yulong Petrochemical Co and Jiangsu Eastern Shenghong Co are sending urgent requests to buy crude for prompt delivery, traders said on Tuesday, adding that they are considering various grades of crude from the Middle East, Africa and America. According to them, cargoes for February are particularly in demand.
The actions of some of China's largest oil buyers are prompted by fears that small private refineries, already under pressure, may be forced to cut operating rates and reduce fuel production if they no longer have access to Russian and Iranian oil at a reduced price.
If the smaller players fail, the larger state-owned refiners are expected to step in to prevent shortages of fuels such as diesel on the domestic market, taking away market share but guaranteeing energy security, a major concern for Beijing.
Addendum
Washington's latest sanctions affect more than 180 tankers and some of Russia's largest oil producers. These measures have had an impact on the Asian oil market, with buyers, shippers and port operators scrambling to cope with the consequences. Some of the sanctioned vessels carrying Russian oil to Shandong have already begun to idle or anchor off the coast of China while shippers consider their next steps.
The interest of Chinese importers in spot oil purchases has been gradually increasing over the past two months after Iran raised the bid price for its oil. But this week, the situation has been exacerbated by US sanctions that target the "shadow fleet" that transports critical cargo around the world, Bloomberg notes .
New US sanctions against Russia push oil prices to a 4-month record13.01.25, 09:24 • 28394 views