Reuters: China rapidly increases Russian oil purchases

China is rapidly increasing its purchases of Russian crude oil to replace supplies from the Middle East, putting pressure on India’s access to crude and raising the risk of a severe fuel shortage across Asia, Reuters reports, citing Kpler analysts.

The analysts said China’s seaborne imports of Russian crude are expected to reach 1.25 million barrels per day in August.

According to them, while this is slightly below July’s 1.423 million barrels per day, both months recorded the highest volumes since April.

China has significantly changed the structure of its purchases. Previously, Beijing imported most of its Russian crude from the country’s eastern ports, primarily ESPO crude.

In August, however, shipments from Russia’s European terminals, mainly Urals crude, accounted for 31% of imports.

The diversion of crude from Russia’s European ports to China has hit India, the main buyer of supplies from that route.

India’s total imports of Russian energy products fell to 1.87 million barrels per day in August, compared with 2.79 million barrels per day in July and 2.73 million barrels per day in June.

India is already struggling to find alternatives to the Russian crude now being purchased by China. As the region’s largest exporter of gasoline and diesel, India could begin feeling the impact of the crude shortage at its refineries as early as September.

If a shortage of crude forces India to cut exports of refined petroleum products, Asia could face a severe fuel crisis.

By Bakhtiyar Abbasov