Chinese refineries have boosted their purchases of flagship Russian crude, taking advantage of discounted cargoes that India refused, while Washington is stepping up trade tariffs against New Delhi, Bloomberg reports. 

India is one of Russia’s main economic partners, after China. Moscow continues to profit from oil supplies to India, accounting for nearly 35% of the country’s imports. Moscow’s energy exports remain its leading source of revenues, which it uses to fund its war against Ukraine.

According to Kpler, in August, Urals crude shipments from the Baltic and Black Sea ports to China averaged nearly 75,000 barrels per day. This is almost twice the year-to-date average of 40,000 barrels per day. At the same time, exports to India fell to 400,000 barrels per day from an average of 1.18 million barrels per day.

Analysts note that Chinese refineries are currently in a favorable position to continue buying Russian oil, unlike their Indian counterparts.

China buying Urals for storage

Data from Kpler and Energy Aspects suggest Chinese refineries have likely purchased 10–15 shipments of Urals for delivery in October–November.

Experts predict that Chinese buyers could acquire more cargoes in the coming days if prices remain attractive.

At present, at least two Urals tankers are idling off the Chinese coast, with several more expected to arrive in the coming weeks. Indian refiners are staying on the sidelines.

Without Chinese purchases, Russian crude may have to be sold at a discount to attract new buyers.