China’s state-owned refiner boosted purchases of Russia’s ESPO crude for July-September delivery as Iran war disruptions cut Middle East flows, sharply reducing Saudi supply and reshaping sourcing decisions.
Sinopec has increased purchases of Russian oil, particularly ESPO crude from Russia’s Far East, to offset reduced Middle East supply after the Iran war disrupted trade flows. Trade sources and ship-tracking data indicate the state-owned refiner bought 30 to 40 ESPO cargoes for July to September delivery, equivalent to about 241,000 to 320,000 barrels per day, or roughly 5% to 6% of its 5.2 million bpd processing capacity. The shift helped Sinopec keep refinery throughput relatively stable, while sharply cutting Saudi purchases to zero in June and July and just 2 million barrels in August versus 20 million barrels in both March and April. Analysts say refiners are favoring barrels with more reliable delivery and lower freight costs, and cheaper Russian barrels have supported margins as China eased fuel export restrictions for July and August after curbing them in March to protect domestic supply.