Sinopec replaces Mideast oil with Russian crude imports
Sinopec bought Russian ESPO crude to replace Middle Eastern supply after a temporary US waiver. The move follows disruptions caused by regional conflicts.
China's state-owned energy giant SINOPEC KANTONS HOLDINGS has reportedly purchased several cargoes of Russian crude oil for March and April delivery. This strategic pivot aims to replace supplies typically sourced from the Middle East, which have been threatened by regional instability. Trade sources in Singapore indicate that the refiner purchased between 8 and 10 cargoes of ESPO blend crude, exported from the eastern port of Kozmino. Each cargo represents approximately 740,000 barrels. These transactions were reportedly finalized at premiums of $8 to $10 per barrel relative to ICE Brent, a significant shift from the $10 discount seen prior to the escalation of regional conflicts involving Iran.
The procurement follows a temporary sanctions waiver issued by the United States Treasury Department. The 30-day window, which expired on April 11, was designed to stabilize global energy prices during the ongoing conflict involving Israel and Iranian forces. This policy shift prompted inquiries from the trading divisions of both Sinopec and PETROCHINA CO LTD-H, although it remains unclear if the latter has finalized any seaborne purchases since previously halting imports in October due to Western restrictions.
