China’s state oil majors have increased Russian imports in a sign that Beijing is ready to give the go-ahead for more crude purchases from the country, according to industry consultants Energy Aspects.
PetroChina Co. and CNOOC Ltd. recently resumed imports of Russian oil in the water, with at least three supertankers of Urals-grade crude flagging China as a destination, EA analysts wrote in a note, without saying where they got the information. China Petroleum & Chemical Corp., or Sinopec, may also increase its intake of the Urals flagship in the coming months, analysts said.
Sinopec declined to comment, while PetroChina and CNOOC did not immediately respond to inquiries from Bloomberg News.
Chinese state refiners have kept a low profile on Russian purchases and have been waiting on the sidelines to increase imports of grades such as Urals due to a lack of clear instructions from Beijing, EA’s note on February 8 Now, the Chinese government is ready to allow more big companies to buy Russian crude loaded in Europe, the analysts wrote.
Separately, private refiners known as teapots have continued to buy Russia’s ESPO and Sokol grades after a brief pause in early December to resolve banking and insurance issues following the Group of Seven price cap.
China’s daily oil imports from Russia could rise by as much as 500,000 barrels this year to about 2.2 million barrels. That could rise to 2.5 million barrels if Beijing decides to take more Urals to fill its commercial or strategic oil reserves.
