China Turns to Russia for Oil Amid Middle East Supply Disruptions

China's Sinopec has increased Russian oil imports to offset reduced supplies from the Middle East, which have been impacted by the war with Iran.

The Chinese state-owned corporation purchased 30-40 cargoes of Russian ESPO crude for delivery in July-September, amounting to 241,000-320,000 barrels per day, or 5-6% of Sinopec's refining capacity.

This move has helped Sinopec keep refining volumes relatively stable and export surplus fuel at high margins. In July, the company received about 7.4 million barrels of ESPO, most of which was delivered to the port of Rizhao in Shandong province.