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Sinopec Increases Russian ESPO Purchases for Third Quarter

The trade shift seeks faster, cheaper deliveries to reduce exposure to Gulf shipping risks.

Overview

  • Sinopec, which Reuters and other outlets reported on Thursday, bought about 30 to 40 shipments of Russia’s ESPO crude for July–September that total roughly 241,000 to 320,000 barrels per day.
  • Traders and ship trackers say Sinopec favored ESPO because it reaches China’s east coast in about a week and trades at a discount that cuts freight and purchase costs.
  • Sources told reporters the recent deals avoided sanctioned Russian counterparties and were arranged via intermediaries, and Sinopec declined to comment publicly on the transactions.
  • The purchases come after Sinopec sharply cut Saudi and broader Middle East volumes, taking no Saudi barrels in June and July and only about 2 million barrels in August versus much larger spring imports.
  • China’s overall crude imports fell steeply since the Iran war, with June down about 41% year‑on‑year, and this short‑haul shift could alter refining margins, crude flows and pricing for regional buyers.