Sinopec Boosts Russian Oil Imports Amid Mideast Supply Disruptions

Sinopec, China's largest refiner, has increased its purchases of Russian oil to offset reduced Middle East supplies caused by the Iran war.

The company has bought around 30-40 shipments, or about 241,000 to 320,000 barrels per day (bpd) of Eastern Siberia-Pacific Ocean (ESPO) blend for July to September deliveries.

This represents 5% to 6% of Sinopec's 5.2 million bpd capacity and has helped the company maintain stable throughput and export margins despite China limiting overseas sales of fuel products from March to protect domestic supply.

The ESPO crude is being sold at a discount of $1 to $2 per barrel to benchmark Brent, about $10 cheaper than rival grades such as Middle Eastern Oman and Brazil's Tupi.