China oil majors resume seeking Russian oil after 4-month halt: sources

Published Tue, Mar 17, 2026 · 08:50 PM

[SINGAPORE] Chinese state oil majors have resumed seeking Russian crude cargoes after a four-month hiatus, taking advantage of a US sanctions waiver, five trade sources said.

The oil majors are looking to head off supply shortages caused by the war in the Middle East.

Trading arms under state-run Sinopec and PetroChina have this week made inquiries with suppliers for possible purchases of Russian oil. It would be their first since November, said five sources close to or involved in Russian oil trade.

While no deals were known to have been struck as at Tuesday (Mar 17), two of the sources said that transactions were likely to be imminent. Russian oil remains cheaper than rival supplies from Brazil and West Africa, despite the surging prices and premiums triggered by the US-Israel war on Iran that began on Feb 28.

Chinese oil majors were “assessing” the situation, said a state oil trader. This included seeing whether payment and delivery could be completed within the 30-day sanctions waiver window that began on Mar 12, and applied to cargoes that had already been loaded.

Sinopec and PetroChina did not immediately respond to requests for comment.

One of the sources said that majors could also seek to secure cargoes while the situation is “messy”, by buying from Chinese independent refiners or traders with Russian-origin oil already in storage.

The source is involved in Russian oil trading and familiar with PetroChina’s trading operations.

“Some teapots are ready to resell, as that makes more money for them than processing at their plants,” said the source, referring to the independent refiners.

End-April arriving ESPO blend, the flagship Russian oil grade, was last heard offered by a Russian producer at US$8 a barrel above July ICE Brent on a delivered basis.

April-loading Brazil’s Tupi grade was last pegged at a premium of between US$12 and US$15 over dated Brent.

From discount to premium

Differentials for ESPO, mostly consumed by China’s independent refiners, flipped into a US$2 to US$3 premium for April to May shipments last week, against discounts of US$7 to US$10 for March-loading barrels.

China’s seaborne Russian oil imports surged to an all-time high of 1.9 million barrels a day in February, Kpler data showed, as independent buyers snapped up deeply discounted cargoes after top buyer India’s demand fell.

Chinese state oil companies suspended buying Russian oil from October 2025 after Washington imposed sanctions on Moscow’s two biggest oil companies, Rosneft and Lukoil.

However, the spikes in spot premiums and outright Brent prices to more than US$100 a barrel would sideline independent refiners, said three of the sources.

This is because the independent refiners were cushioned for the near term, with cheaper inventories of Russian and Iranian oil bought before the war. REUTERS