As Chinese refiners drop Russian oil, all eyes are on potential new suppliers, and the US could benefit. A new trade truce coincides with China, the world’s top importer, actively looking for alternative supplies.
The shift away from Russia is driven by sanctions. State-owned Sinopec and PetroChina are canceling cargoes due to US sanctions on Rosneft and Lukoil. Private “teapots” are shunning supplies, terrified by the blacklisting of Yulong Petrochemical.
This “buyers’ strike” has hit Moscow’s revenues hard, with ESPO crude prices plunging.
However, a lack of clarity from a recent Trump-Xi summit has created a “muddle.” The leaders’ silence on oil has left the market uncertain.
This uncertainty, combined with a domestic shortage of import quotas for many teapot refiners, is complicating China’s ability to pivot to new suppliers like the US.