China is preparing to resume purchases of Russian oil – media

Chinese state-owned oil companies are preparing to resume purchases of Russian oil after a four-month pause, taking advantage of a temporary easing of US sanctions .

Reuters reports this .

The agency said units of Sinopec and PetroChina reached out to suppliers this week to discuss possible deals, which if implemented would be the first contracts since November.

No deals have been signed yet , but Reuters sources expect that agreements could be reached soon .

Chinese companies are seeking to avoid a shortage of raw materials amid the worsening situation in the Middle East. At the same time, Russian oil remains cheaper than alternative supplies from Brazil and West Africa.

According to one trader , companies are assessing payment and logistics options within the 30- day sanctions relief period that started on March 12 .

Sources also do not rule out that major players may buy Russian oil through intermediaries – independent Chinese refineries or traders.

“ Some independent refiners are ready to resell oil, because it brings them more profit than refining,” the agency’s interlocutor noted .

In particular, the Russian ESPO blend for delivery in late April is offered at a premium of about $ 8 per barrel to Brent, while the Brazilian Tupi variety is priced at a premium of $ 12-15 .

It was previously reported that the US eased sanctions for 30 days and allowed the purchase of Russian oil and petroleum products that are already transported by sea.

As a reminder, global oil prices have exceeded $100 per barrel amid the worsening situation in the Middle East. This happened for the first time since 2022, and investors are taking into account the risks of prolonged disruptions in energy supplies.