Chinese state-owned refiners including Sinopec and PetroChina have cancelled several Russian oil cargoes after US sanctions against Rosneft and Lukoil on 22 October.
The buyers’ move has cut Russian crude exports to China by about 45% — roughly 400,000 barrels a day. The price of ESPO crude, Russia’s main export grade to Asia, has fallen sharply and now trades at a 50-cent discount to Brent, having sold at a one-dollar premium in early October.
Major Turkish refineries are also reducing purchases of Russian crude; the country’s largest refinery has ordered cargoes from Iraq and Kazakhstan for December delivery, and Tüpraş has stopped using Russian oil at one of its refineries to maintain access to European markets.
Smaller private Chinese refiners have also stopped buying Russian oil for fear of similar sanctions — a trend that intensified after Shandong Yulong Petrochemical was blacklisted by the UK and the EU.
