China boosts imports of Russian oil amid record discounts – Reuters
Illustrative photo: due to Western sanctions, Russia is selling oil to China at record discounts (Getty Images)
In November, China imported 4.88% more crude oil compared to 2024, with daily volumes now at their highest level since August 2023. This increase came as a result of significantly cheaper feedstock due to sanctions against Iran and Russia, Reuters reports.
"The world's largest crude importer brought in 50.89 million metric tons of oil in November, equivalent to 12.38 million barrels per day (bpd), up 5.24% from October, according to data from the General Administration of Customs," the agency writes.
From the beginning of the year through November, China’s crude oil imports reached 521.87 million tons, exceeding last year’s figure by 3.2%.
Despite a seasonal decline in domestic demand, crude prices fell due to sanctions pressure on Iran and Russia. As a result, more refineries submitted applications for preliminary import quotas ahead of the first batch for next year.
Reuters notes that Russia has been forced to offer record discounts to China due to the sanctions. In particular, ESPO crude for loading is currently being sold in Chinese ports at a discount of 5–6 dollars per barrel compared to Brent.
Sources told the outlet that this is the largest discount ever recorded. For example, in October, this grade of oil was sold at a discount of 0.5–1 dollar per barrel.
Despite this price drop, some cargoes of Russian oil loaded in December have still not found buyers.
"The discounts widened in China on falling demand after state refiners suspended buying because of recent Western sanctions while private players have also become more cautious," Reuters notes.
According to media reports, Russia has focused on increasing its natural gas exports to China. The aggressor state supplies gas to the Chinese at a discounted price.
