Sinopec Boosts Russian Oil Purchases Amid Middle East Supply Crunch

China's state-owned oil refining giant Sinopec has been buying more Russian crude oil to compensate for reduced supplies from the Middle East due to the war against Iran. According to multiple sources, Sinopec increased its purchases of ESPO (East Siberia, Pacific Ocean) crude from Russia's Far East in July, August, and September.

The purchases represent 5% to 6% of Sinopec's total processing capacity of 5.2 million barrels per day, which has helped the company maintain relatively stable throughput and ship surplus fuel at a high export margin.

Sinopec purchased between 30-40 cargoes of ESPO crude during this period, with some deliveries assessed at a discount of $1-2 per barrel compared to benchmark Brent crude. This makes them approximately $10 cheaper than competing grades from regions like Brazil and West Africa.