Sinopec Boosts Russian Oil Purchases Amid Middle Eastern Disruptions
China's Sinopec Corporation, the world's largest oil refiner, has increased its purchases of Russian oil to compensate for reduced supplies from the Middle East. According to Reuters, citing sources and data on ship movements, Sinopec has purchased between 30-40 batches of Russian ESPO oil for delivery in July-September.
This amounts to approximately 241,000 to 320,000 barrels per day, which is around 5-6% of the company's refining capacity. The cheaper price of Russian oil compared to grades from Brazil or West Africa has allowed Sinopec to maintain stable refining volumes and export surplus fuel at high margins.
Reuters notes that Sinopec received about 7.4 million barrels of Russian ESPO crude in July, with most delivered to the port of Rizhao. The company also bought at least 10 batches for August and September, according to traders.