China increases oil purchases

Chinese state-owned oil corporations, as well as large private refiners, are actively buying up oil coming from the Middle East and other regions. 

This is due to possible supply disruptions caused by increased sanctions pressure on Russia and Iran. Among the companies involved in the procurement, such players as Cnooc and Shandong Yulong Petrochemical Co stand out, which place urgent oil orders with prompt delivery times. Special attention is being paid to deliveries scheduled for February.

The main reason for this behavior is concern that small private refiners may face the need to reduce fuel production capacities and volumes. This may happen as a result of the loss of access to cheaper Russian and Iranian oil. In the event of such a situation, large state processors are ready to take on a key role in maintaining energy stability within the country.

The new wave of US sanctions has affected more than 180 tankers, as well as a significant number of Russian oil producers. Against this background, tensions have increased in Asian markets. In response, Chinese importers have stepped up spot purchases, despite the fact that Iran has raised the price of its oil.