China Is Spoilt for Choice of Oil as Many Avoid Russian Barrels
- At least one Chinese refiner took less term supply from Saudis
- Offers continue for Russian ESPO, Urals to China, traders say
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Chinese oil buyers are spoilt for choice right now even as lockdowns hurt demand as they can opt for everything from discounted Russian crude and sanctioned Iranian oil to regularly-taken Middle Eastern barrels.
While a wave of sweeping anti-virus curbs has put a dent in current consumption, China has an ample list of supplies that refiners can tap once usage rebounds. With Russian cargoes -- from ESPO from the Far East and Urals from western fields -- being avoided by many other buyers given the war in Ukraine, that’s cleared the way for mainland takers. At the same time, millions of Iranian and Venezuelan barrels are still floating in Chinese waters.