INDIA, CHINA SWITCH TO MIDDLE EAST OIL DUE TO SANCTIONS AGAINST RUSSIA

Indian and Chinese refiners are increasing oil imports from the Middle East due to concerns that US sanctions will limit the supply of Iranian and Russian oil.

Already this week in India, 2 state-owned refineries have purchased 6 million barrels. Omani and Emirati oil for delivery in February, plus 2 million barrels. WTI oil. Traders attribute this purchase to the shortage of Russian oil, Bloomberg reports.

In turn, Chinese companies have also begun to buy oil from the Emirates more actively.

According to international traders, this is caused not only by the reduction in volumes of Urals, ESPO and Iranian oil, but also by fears of a reduction in supply of these oils due to the tightening of sanctions against Iran and Russia and the risk of secondary sanctions that Asian refiners may be subject to.

According to Kpler, Iran and Russia accounted for about 25% of China’s oil purchases in December, while Russia accounted for about a third of India’s oil imports.