Chinese refineries have moved quickly to secure Russian crude oil shipments from ports that typically supply India, as New Delhi cuts back on Moscow’s oil due to US tariffs. Analysts report that at least 15 cargoes of Russian oil are slated for delivery to China in October and November.
China and India had emerged as the top buyers of Russian crude after Moscow’s 2022 invasion of Ukraine, which led Western countries to shun Russian exports. However, US President Donald Trump imposed secondary tariffs on countries importing Russian oil, pressuring India to reduce its purchases. Earlier this month, Trump announced an additional 25% tariff on Indian exports to the US tied to Russian oil and gas imports, adding to a previous 25% levy.
Muyu Xu, senior crude oil analyst at Kpler, said China’s state-owned and large private refiners had secured around 13 cargoes of western Russian crude for October and at least two for November. The cargoes, each typically ranging from 700,000 to 1 million barrels, will be shipped from Russia’s Arctic and Black Sea ports—regions that usually supply India.
“The buying reflects an opportunistic move, as Russian oil remains at least $3 per barrel cheaper than Middle Eastern alternatives,” Xu said. She added that more Chinese refineries are likely to increase purchases in the coming weeks while prices remain low and Indian demand remains constrained by US pressure.
Last year, India imported $53 billion worth of Russian petroleum and crude, with Russian supplies accounting for 36% of its market, making it the largest source of crude before the recent cuts.
(This story is published from a syndicated feed)