Chinese state oil majors resume seeking Russian crude after four-month pause, sources say
The Facts
- Chinese state oil majors have resumed seeking Russian crude after about a four-month pause.
- Trading arms under Sinopec and PetroChina reportedly made inquiries with suppliers this week about possible purchases of Russian oil.
- The companies were seeking Russian crude in response to concerns about supply shortages tied to conflict in the Middle East.
- As of March 17, no deals had been confirmed.
- Sources said any transactions could be imminent.
- Sources said Russian oil remained cheaper than competing supplies from Brazil and West Africa.
Context
Which Chinese companies were involved?
The reports say the trading arms of state-run Sinopec and PetroChina made inquiries with suppliers about possible Russian oil purchases Reuters Business Times Asharq Al-Awsat Eng… НВ.
Had any purchase agreements been reached?
No. The sources cited in the reports said no deals were known to have been struck as of March 17, although some said transactions could happen soon Reuters Business Times Asharq Al-Awsat Eng… НВ.
Why might Russian crude be attractive to Chinese buyers now?
The reports say Russian oil was still cheaper than rival supplies from Brazil and West Africa, even as Middle East conflict raised prices and premiums elsewhere Reuters Business Times НВ.
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