• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Chinese Refiners Seek Government Help To Keep Russian Oil Flowing

Chinese state refiners have sought help from the country’s government to secure the continued flow of Russian crude oil after EU sanctions on the commodity enter into effect next month, according to unnamed sources cited by Bloomberg.

The sanctions—part of an EU embargo on Russian crude—are coordinated with the G7 price cap on Russian oil exports, and involve a ban on the financing, shipping, and insurance of Russian oil cargoes to any country that does not comply with the cap, which has yet to be set.

According to the Bloomberg report, some of the solutions on the table include higher volumes of pipeline oil coming from Russia into China, the establishment of a designated bank to handle the payments, and ship-to-ship transfers, which are commonly used in the transportation of sanctioned Iranian oil.

Meanwhile, India is also preparing for the EU Russian oil embargo: it has increased its intake of Russian crude, importing 900,000 bpd in October, according to Indian media. The amount was the highest on record and represented 22 percent of India’s total oil imports for that month.

“But future purchases of Russian crudes by Indian refiners will depend on how the EU ban shapes up the seaborne trade and whether Russian crudes make economic sense given high freight rates and the market structure," The Telegraph quoted an S&P Global Commodities analyst as saying.

According to Bloomberg sources, the Chinese authorities have not yet settled on a solution to the embargo-related challenges to continued supplies of Russian oil. Refiners appear to be especially worried about insurance as European majors in that industry begin to prepare for the sanctions, and about re-insurance.

One way to settle these concerns, Bloomberg notes, is to turn to purchases of Russian oil on a delivered basis, meaning the responsibility of finding tankers and insuring cargoes lays with the seller.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News