China moves to purchase lesser-known Russian crude products from Arctics

China has started importing a wider variety of Russian crude oils, including the lesser-known Arco grade oil product from the Arctic. 

According to Bloomberg, Chinese buyers ordered three cargoes of crude from the Arctic, such as the highly sulfurous and dense Arco variety for arrival in January of February.

Citing data provided by analytics firm Vortexa, the report notes on the data pointing to the first China-bound flows in November, while adding that this move may displace Middle Eastern barrels, such as Iraq’s Basrah Heavy.

Bloomberg refers to another analytics firm, Kpler, which also notes on another Russian crude variety being purchased by China, the lighter Novy Port and Varandey crudes.

“The re-routing of Arctic grades is absolutely taking place. Russia’s Arctic grades were among the Europe-oriented streams that since [the price cap taking effect since] December 5 have to find new homes elsewhere, and in all of those cases it’s pretty much an India and China split”, a Kpler analyst told the publication.

The unusual purchases of Russia's Arctic oil products come after China’s daily crude and condensate flows hit the second-highest on record in December 2022, so Kpler.