China significantly increases imports of Russian Urals crude oil, as Russia offers discounts after India cut its purchases of Russian oil under U.S. pressure

According to energy data analysis company Kpler, the supply of Urals crude oil to China in August reached 75,000 barrels per day, doubling the average level this year, while exports to India dropped from an average of 1.18 million barrels per day to 400,000 barrels per day. Under the background of U.S. pressure leading to India's reduction in imports, Chinese refining companies have significantly increased their purchases of Russian Urals crude oil.

Urals crude oil is mainly transported through Baltic and Black Sea ports. Previously, India was the main buyer of this type of crude oil, while China favored the East Siberian ESPO crude oil due to logistical convenience. However, data from Energy Aspects and Kpler show that Chinese refineries have purchased at least 10-15 batches of Urals crude oil for delivery in October-November, and two oil tankers carrying Russian crude are currently waiting off the Chinese coast.

This trend stems from President Trump's decision to double tariffs on Indian goods to retaliate against its purchase of Russian crude oil. The White House said New Delhi's actions were "opportunistic" and "seriously undermined international efforts to end the war in Ukraine." However, the U.S. did not take similar measures against China. Trump said last week that because of progress in negotiations with Putin, he would not increase tariffs on Chinese goods.

The U.S. pressure has imposed substantial restrictions on India, while Chinese enterprises are in a more favorable position. Mukesh Sadvani, head of the commodities market at Rystad Energy, stated: "Russian excess crude oil must find a place to go, and these oils can only be stored by China. Without Chinese purchases, Russia will have to further reduce prices to attract new buyers."

In early August, Russia began offering a discount of $1.5 per barrel for Urals crude oil to Chinese enterprises, with related negotiations conducted by institutions such as Litasco, a trading company affiliated with Lukoil.

Original article: www.toutiao.com/article/1840881987640320/

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