Sinopec Boosts Russian Oil Imports Amid Mideast Supply Crunch

Sinopec, China's largest refiner, has significantly increased its purchases of Russian oil to offset reduced supplies from the Middle East, according to trade sources and ship tracking data. The firm has bought around 30 to 40 shipments, or approximately 241,000 to 320,000 barrels per day, of Russia's Eastern Siberia-Pacific Ocean (ESPO) blend for July to September deliveries.

This move helps Sinopec maintain relatively stable throughput and export surplus fuel on strong margins. The purchases are part of the refiner's efforts to adapt to supply chain disruptions caused by the Iran war, which has led to a significant reduction in Middle Eastern oil imports.

Despite China limiting overseas sales of fuel products from March to protect domestic supply, Sinopec's ESPO purchases have been made via intermediaries and do not involve sanctioned entities as counterparties. The refiner sourced nearly half of its crude from the Middle East before the Iran war, but has since reduced imports due to Saudi cuts.