China scoops up rare Russian oil as top buyer boosts imports

China scoops up rare Russian oil as top buyer boosts imports

China is importing a wider variety of Russian crudes, including the lesser-known Arco grade, just as the nation doubles down on purchases.

Buyers snapped up three cargoes of crude from the Arctic including the highly sulfurous and dense Arco variety for arrival this month or in February, according to Vortexa Ltd., with data showing the first China-bound flows in November.

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Traders said the purchases may displace some Middle Eastern barrels, such as Iraq’s Basrah Heavy.

Another data and analytics firm, Kpler Ltd., said China’s latest round of purchases included Varandey and a lighter variety known as Novy Port.

Beijing’s warm relations with Moscow have seen it boost imports of Russian oil since the outbreak of the Ukraine war, replacing European and US buyers. The unusual purchases of Arctic oil come after China’s daily crude and condensate imports hit the second-highest on record last month, according to Kpler.

Independent processors have sought to use up import quotas since late last year as the nation pivoted away from Covid Zero, aiding demand.

“The rerouting of Arctic grades is absolutely taking place, said Viktor Katona,” Vienna-based lead oil analyst at Kpler, highlighting the date when EU