China's Sinopec, the world's largest refiner by capacity, has significantly increased purchases of Russian Far East crude for third-quarter delivery as it seeks to secure reliable cargo arrivals amid persistent shipping constraints in the Middle East, where conflict has disrupted tanker traffic through the Strait of Hormuz — a chokepoint carrying roughly a fifth of global oil consumption.

The state-run refiner has acquired between 30 and 40 shipments of Russia's Eastern Siberia-Pacific Ocean (ESPO) crude, equating to approximately 241,000 to 320,000 barrels per day (bpd), for delivery between July and September, according to trade sources and vessel-tracking data analysts who spoke with Reuters.

The ESPO blend, a light sweet crude loaded from Russia's Far Eastern port of Kozmino, requires only about a week to reach China's east coast refineries. It is priced lower than comparable grades from West Africa and Brazil, and its shorter transit time provides a significant logistical advantage over Middle Eastern barrels that must traverse the longer Persian Gulf route.

"Rather than broad-based import growth, demand is shifting towards barrels with greater delivery certainty and lower freight costs — primarily onshore inventories and short-haul Russian Far East cargoes," Emma Li, lead China analyst at ship-tracking firm Vortexa, told Reuters.

China, the world's largest crude oil importer, has reduced its overall crude oil imports as the Middle East conflict has intensified, with refiners cutting run rates and authorities restricting fuel exports to safeguard domestic supply. The import decline reached a ten-year low in June.

China has since eased some fuel export restrictions, a move that could contribute to a rebound in crude oil imports. However, Sinopec is continuing to prioritize supply certainty over Middle Eastern barrels.

Sinopec's ESPO purchases do not involve any sanctioned Russian entities. Supply reliability, lower prices, and short transit times have all contributed to the attractiveness of Russian Far Eastern crude for Sinopec's refining operations through September.

Sinopec and other major state-controlled Chinese refiners suspended Russian crude purchases in October 2025 after the United States sanctioned Rosneft and Lukoil. The Chinese refiners resumed Russian purchases in March of this year, following the Iran war's disruption of Middle East oil supply through the Gulf and a U.S. decision to waive sanctions on Russian crude sales.

With supply from Saudi Arabia and other major Middle Eastern producers now at risk due to the ongoing conflict, Sinopec has again turned to Russian crude to meet its refining needs.

Source: OilPrice.com