(Singapore Road Power Power) sources revealed that PetroChina and Sinopec are restoring discount crude oil purchasing Russia.
According to Reuters, people familiar with the matter revealed that Chinese national refineers have obtained permission and can purchase Russian crude oil from a discount price from a trading company, which will greatly reduce the cost of importing PetroChina and increase the profit margin.
KPLER data from Lufute and Ship Tracking Website shows that PetroChina will receive about 1.5 million barrels of Ural crude oil at the Qinzhou Refinery in Guangxi later this month.The refinery imported 730,000 barrels of Ural crude oil in October and November last year.Sinopec's trading subsidiary, China International Petrochemical Co., Ltd., will also restore imported Russian crude oil, but it is unclear to purchase volume and delivery location.
China is the world's second largest oil consumer country. After ending the clearance policies, the demand for transportation fuel is rebounding.
Ural crude oil loaded in March traded at a discount price of about $ 13 ($ 17), and the discount price two months ago was $ 7.
Last year, United Petrochemical was one of the main buyers of Russian crude oil.The Sinopec refinery in Maoming, Zhanjiang, Ningbo, and Tianjin had previously received Ural crude oil.
PetroChina and United Petrochemical transactions have not violated sanctions
People familiar with the matter also said that PetroChina and United Petrochemical did not violate the sanctions regulations. They only purchased crude oil delivered by trading companies. These trading companies were responsible for paying and arranging transportation to Russian manufacturers.
According to regulations, the intermediaries involved in the transaction must show to U.S. officials that Russian crude oil is traded at a price of $ 60 per barrel.
