China Rushes to Secure Russian Oil Amid Middle East Tensions

Chinese refiners are intensifying their purchases of Russian ESPO crude oil due to growing uncertainty surrounding oil shipments through the Persian Gulf amid conflicts in the Middle East.

Market analysts point out that Chinese major oil companies, led by Unipec, have been buying up Russian ESPO crude since July. This has led to a significant increase in seaborne oil shipments from Russia to China, with imports approaching their highest levels since March when conflicts in the Middle East affected regional oil supplies.

According to data analytics firm Kpler, China's imports of Russian crude oil have reached approximately 1.4 million barrels per day so far in July. This increased demand has also affected ESPO crude pricing, with its discount narrowing to around USD 1 per barrel following strong buying activity.