Sinopec Ditches Middle Eastern Crude for Cheaper Russian ESPO Blend
China's top refiner Sinopec has made a significant shift in its crude oil purchases, opting for Russian ESPO crude over Middle Eastern supplies. According to trade sources and vessel-tracking data analysts, Sinopec has acquired between 241,000 to 320,000 barrels per day (bpd) of Russia's Eastern Siberia-Pacific Ocean (ESPO) blend for delivery between July and September.
The ESPO blend is loaded from Russia's Far Eastern port of Kozmino and takes only about a week to be delivered to China's east coast refineries. It is also cheaper than similar grades from West Africa and Brazil, and faster to reach China. Emma Li, lead China analyst with ship tracker Vortexa, noted that demand for crude oil imports in China has shifted towards barrels with greater delivery certainty and lower freight costs.
Sinopec's decision to prioritize Russian ESPO crude comes as the Middle East conflict continues to disrupt global oil supplies. Despite easing some fuel export restrictions, China's refiners have cut run rates and authorities restricted fuel exports to protect domestic supply. Sinopec is not taking chances on Middle Eastern supply and has snapped up Russia's ESPO crude, with purchases not involving any sanctioned Russian entities.
The supply certainty, lower price, and short travel time of the ESPO blend are all playing in favor of Russia's Far Eastern crude to feed more of Sinopec's refining capacity until September. Sinopec and other major state-controlled Chinese refiners had suspended purchases of Russian crude in October 2025 when the U.S. sanctioned Rosneft and Lukoil, but resumed Russian purchases in March this year as the Iran war trapped the Middle East's oil supply in the Gulf.