“Chinese refiners have increased purchases of North Sea and Mediterranean crude as Asian refiners ramp up supplies due to recent US sanctions targeting Russian oil.”, — write: epravda.com.ua
Chinese refiners have increased purchases of North Sea and Mediterranean crude as Asian refiners ramp up supplies due to recent US sanctions targeting Russian oil. This is reported by the Bloomberg agency. Chinese buyers bought about 3 million barrels of Caspian CPC Blend oil, usually sold in the Mediterranean, after a five-month hiatus, according to traders in the market. Traders are also in talks to send three supertankers that will load a total of 6 million barrels of North Sea Forties crude late this month and early March for delivery to Asia.Advertisement: The unusual purchases underscore the urgency for Chinese refiners looking for alternative grades after The USA introduced the toughest sanctions against Russian oil. India and China, the two largest buyers of Russian oil, are forced to look for supplies in other regions, mainly in the Middle East. However, due to the sharp rise in oil prices from the Middle East, buyers are forced to turn their attention to more distant sources. While some grades, such as CPC Blend, are becoming more expensive for local buyers, they are still cheaper than crude from the Middle East on a delivery basis, traders said.Advertisement: Indian refiners are also actively buying additional volumes from the Atlantic Basin and the Middle East. Since the beginning of the year, Indian Oil Corp. purchased 10 million barrels in spot tenders, including grades from Abu Dhabi, West Africa, and the United States. Two more Indian refiners also bought Middle Eastern crude on the spot market at the beginning of the month. We will remind: the Office of the Control of Foreign Assets of the US Treasury Department introduced sanctions against the two largest oil companies of the Russian Federation, Gazprom Neft and Surgutneftegaz, as well as ship insurance providers Ingosstrakh and Alfastrahovanie. According to the Financial Times, the measures include blacklisting 183 “shadow fleet” vessels involved in the export of energy resources from Russia. India is set to ditch oil tankers that have been sanctioned by the US over their role in transporting cargo for Russia, another example of the impact of Washington’s measures on the global oil market. Three tankers with more than 2 million barrels of Russian oil are floating in the waters off eastern China and cannot be shipped after the United States imposed new sanctions on Russia’s largest oil companies on Friday, January 10. At least 65 oil tankers have anchored in various locations, including off the coasts of China and Russia, since the United States announced a new package of sanctions on January 10. Russian oil exports by sea may decline in the coming weeks after the US introduced measures against Russia’s two biggest exporters and about 160 shadow fleet tankers.