China’s March imports of Russian oil may hit record
China’s seaborne imports of Russian oil are set to hit a record this month after refiners took advantage of cheap prices as domestic fuel demand rebounded, but Russia’s plan to cut exports will likely cap buying in coming months.
Hefty Chinese buying, alongside robust Indian demand, has been spurred by steep price discounts but is providing Moscow much-needed revenue after the Group of Seven imposed a $60 price cap on Russian crude.
Tanker tracking consultancies Vortexa and Kpler estimated nearly 43 million barrels of Russian crude oil, comprising about at least 20 million barrels of ESPO Blend and 11 million barrels of Urals, are set to reach China in March.
The previous high for Russian seaborne crude imports was 42.48 million barrels in June 2020, shiptracking data showed.
The data also pointed to record arrivals of rarely bought oil from Russia’s Arctic, with three tankers carrying about 3.15 million barrels due to reach China this month, after 2.7 million barrels landed in February.
China, Russia’s largest oil buyer including via pipelines, has been taking steady volumes of ESPO crude as refiners – mostly its independent plants – favour the oil’s high quality and proximity. ESPO Blend is a light, low sulphur grade exported from Far East ports.
