Major oil refining companies, such as Sinopec and PetroChina Co., as well as independent firms known as "teapots," have stopped purchasing Russian oil.
Reports indicate that fearing increased restrictions, businesses have ceased cooperation with Russian suppliers after Shandong Yulong Petrochemical Co. was blacklisted by the UK and the European Union.
Traders report that this has negatively impacted the value of the premium ESPO (Eastern Siberia-Pacific Ocean) grade, which has significantly dropped.
According to the Norwegian consulting firm Rystad Energy AS, the refusal of Chinese companies to buy Russian oil and the decline in prices affect about 400,000 barrels per day, which accounts for up to 45% of the total oil imports to China from Russia. Notably, Yulong is now forced to purchase only Russian fuel, as it has become impossible to work with Western suppliers.
It was also previously reported that oil refineries in Turkey have increased their oil purchases from alternative suppliers following the sanctions imposed by Western countries against the Russian oil sector.
