China became more active in buying Russian oil due to disputes with Iran

Chinese private refineries have increased purchases of Russian oil due to ongoing price disputes with Iran.

According to Bloomberg data, the February shipment of 3.8 million tons of Russian oil was sold within two weeks. Russia has lowered the price of oil supplied via the Eastern Siberia–Pacific Ocean (ESPO) oil pipeline, which has made it more attractive to private oil refining companies in China.

These companies, which account for more than a quarter of the country's total refining capacity, have long benefited from the purchase of oil, which others refused due to the risk of sanctions from Western countries.

The increase in fuel prices from Iran has increased the attractiveness of ESPO, which was already popular with Chinese companies because of its low cost. According to the latest data, in December 2023, more than 90% of ships with oil from the ESPO arrived at Chinese ports.

Earlier it was reported that in early December, Iran announced a reduction in discounts for Chinese buyers to $5-6 below the cost of a barrel of Brent crude oil. In November, the discount was $10 off the Brent price.