Sinopec Diversifies Russian Oil Purchases Amid Middle Eastern Supply Shortfall

China's state-owned Sinopec has increased its purchases of Russian oil to offset disruptions in Middle Eastern supplies caused by the US-Israeli war on Iran. The company bought between 30 and 40 shipments of ESPO-blend crude for July-September delivery, equivalent to about 241,000-320,000 barrels per day.

This represents roughly 5-6% of Sinopec's 5.2 million barrels per day refining capacity. Most of the July cargoes were delivered to the company's Rizhao refinery in Shandong province.

'Rather than broad import growth, demand has shifted toward cargoes with more reliable delivery and lower freight costs,' said Emma Li, lead China analyst at ship-tracking firm Vortexa Analytics.