Sinopec steps up Russian oil imports to offset Mideast supply cuts: Reuters
The refiner bought 30 to 40 ESPO cargoes for July to September as discounted Russian barrels replaced reduced Saudi and other Middle East supplies, traders said.
- On Aug 6, Sinopec Corp ramped up purchases of Far East Russian oil to compensate for Middle East supplies diminished by the Iran war, according to trade sources and ship tracking data.
- The refiner slashed Saudi crude imports, taking only 2 million barrels in Aug compared to 11 million monthly before the Iran war started. Sinopec did not buy any Saudi crude for June and July.
- Utilizing intermediaries to avoid sanctioned entities, Sinopec secured 30 to 40 shipments of ESPO, or about 241,000 to 320,000 barrels per day, for July to September deliveries. This equates to 5% to 6% of refining capacity.
- September-Loading ESPO trades at discounts of $1 to $2 to benchmark Brent, making it about $10 cheaper than rival grades such as Middle Eastern Oman and Brazil's Tupi, traders said.
- Emma Li, lead China analyst with Vortexa Analytics, said demand is shifting toward short-haul Russian cargoes and barrels with greater delivery certainty. "Rather than broad-based import growth, demand is shifting towards barrels with greater delivery certainty and lower freight costs," Li told Reuters.
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(Seoul = Yonhap News) Reporter Kwon Sook-hee = Sinopec, the world's largest oil refiner, is entering the Russian Far East to make up for the reduced supply of Middle Eastern crude oil caused by the war with Iran...
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EXCLUSIVE: Sinopec steps up Russian oil imports to offset Mideast supply cuts, traders and tracker say
China's state-owned Sinopec Corp, the world's biggest refiner, has ramped up purchases of Far East Russian oil to compensate for Middle East supplies diminished by the Iran war, according to multiple trade sources and ship tracking data.
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