Sinopec Boosts Russian Oil Purchases Amid Middle East Supply Shocks

China's state-owned Sinopec Corporation has increased purchases of Russian oil to compensate for Middle East supplies affected by the Iran war. According to multiple trade sources and ship tracking data, Sinopec has bought around 30 to 40 shipments, or about 241,000 to 320,000 barrels per day (bpd), of Russia's Eastern Siberia-Pacific Ocean (ESPO) blend for July to September deliveries.

This amounts to five to six percent of the refiner's processing capacity of 5.2 million bpd, and is part of Sinopec's efforts to maintain stable throughput and export fuel on strong margins.

Sinopec has not publicly discussed its operational matters, but analysts believe that the company's crude demand appears to have bottomed out following the easing of fuel export restrictions.