Chinese firms resume purchases of Russian oil after four-month pause

Chinese state oil companies have resumed purchases of Russian oil after a four-month hiatus, seeking to avoid supply shortages amid tensions in the Middle East.

According to Report, citing Reuters and trading sources, Beijing is taking advantage of a temporary easing of US sanctions.

Trading units of Sinopec and PetroChina this week began requesting information from suppliers on potential purchases for the first time since November. While no deals had been confirmed as of Tuesday evening, analysts say they are likely.

Russian oil remains significantly cheaper than alternatives from Brazil or West Africa, despite a broader surge in prices and premiums following the outbreak of conflict involving the United States, Israel and Iran on February 28.

China is also assessing whether payments and deliveries can be completed within a 30-day window that opened on March 12 under the US sanctions relief. The exemption applies only to cargoes already loaded onto tankers.

Sinopec and PetroChina have not commented. Analysts note that state firms may also source Russian crude through domestic intermediaries, including independent refiners or traders holding oil in storage.