China importing less Iranian crude as it buys more Russian barrels

Russian crude oil imports into China have reduced the country’s intake of Iranian crude, Hellenic Shipping News reported, citing data from shipbroker Xclusiv.

According to the data, increased Chinese appetite for discount Russian crude has led to a sharp increase in Russian imports but these have increased at the expense of Iranian oil cargos, OilPrice.com reports.

Xclusive noted that this month demand for all crude from Chinese refineries might decline due to some of them entering scheduled maintenance.

Reuters meanwhile reported earlier that Chinese refiners are now competing with Indian peers for Russian ESPO crude—a blend that’s more expensive than the flagship Urals.

The report cited unnamed sources as saying India and China were eager to buy as much ESPO for next month as possible, pushing its price higher. India refiners Reliance Industries and Nayara Energy had already managed to book at least five cargos of a total of 33 offered for delivery in April, attracted by the low price.

This is a break from normal when Chinese refiners have been the only buyers of ESPO, which Russia ships from its Pacific coast.

Reuters goes on to note that most Russian crude is being traded below the price cap set by G7 and the European Union, yet the price chart for ESPO shows that the crude has not traded at $60 or below for at least a year. Its latest price, as of Wednesday, was $71.61 per barrel.

In an earlier report this month, Reuters cited cargo-tracking data as suggesting Chinese imports of Russian crude could hit a record this month before potentially declining as Russian tightens production.

Data from tanker trackers Vortexa and Kpler, Reuters reported, suggests that Chinese refiners are set to import some 43 million barrels of Russian crude this month, of which 20 million barrels of ESPO.