“China’s state-owned oil companies and large private refiners are rapidly buying oil from the Middle East and other regions, preparing for possible disruptions in supplies due to increased sanctions against Russia and Iran.”, — write: epravda.com.ua
China’s state-owned oil companies and large private refiners are ramping up purchases of oil from the Middle East and elsewhere in preparation for possible supply disruptions due to increased sanctions against Russia and Iran. This is reported by the Bloomberg agency. Companies such as Cnooc, Shandong Yulong Petrochemical Co and Jiangsu Eastern Shenghong Co are actively looking to buy oil for immediate delivery, traders said. February deliveries are particularly popular, with various grades of oil being considered, including from the Middle East, Africa and the Americas.Advertisement: The actions of China’s biggest oil buyers are explained by fears that small private refiners may be forced to reduce production capacity or even cut fuel output if they unavailable Russian and Iranian oil. If smaller players exit the market, large state-owned refiners are likely to be forced to step in to avoid fuel shortages in the domestic market, especially diesel. This will allow them to capture a larger market share and ensure energy security, a key priority for Beijing. Washington’s new sanctions have affected more than 180 tankers and several of Russia’s largest oil-producing companies. The measures have already affected the Asian oil market, where buyers, shippers and port operators are scrambling to cope with the fallout.Advertisement: Some tankers carrying Russian ESPO crude to Shandong have begun to idle near China as carriers look for further solutions. Interest in spot oil purchases among Chinese importers has grown gradually over the past two months after Iran raised prices for its oil. But this week, demand has increased sharply due to new US measures targeting the “shadow fleet” of the Russian Federation. 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 for 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 US imposed new sanctions on Russia’s largest oil companies on Friday, January 10.