China increases purchases of Russian Urals oil amid declining demand in India

Chinese oil refiners have increased imports of Russian Urals crude oil, taking advantage of a discount on shipments that Indian buyers refused.

Although China traditionally receives Russian oil from the fields of the Far East, in August Urals supplies from the ports of the Baltic and the Black Sea reached about 75 thousand barrels per day, almost twice the average level since the beginning of the year (40 thousand barrels). For comparison, exports to India decreased to 400 thousand barrels per day against the usual 1.18 million.

According to Kpler and Energy Aspects, Chinese refineries have already purchased 10-15 shipments of Urals for delivery in October and November, which significantly exceeds their standard purchase volumes. 

There are already at least two Urals tankers in Chinese waters, the Georgy Maslov and Zenit, each carrying 1 million barrels of oil. Both vessels are located off the coast of Zhoushan, where strategic reserves and facilities of Zhejiang Petroleum are located. & Chemical Co.

Indian refiners, on the contrary, are refraining from new contracts, although, according to traders, they continue to receive offers for Urals.