By Tsvetana Paraskova – Mar 17, 2026, 9:30 AM CDT
Chinese state oil giants are back scouring the market for Russian crude, four months after halting purchases due to the U.S. sanctions on Rosneft and Lukoil, as China aims to offset losses of supply stuck in the Strait of Hormuz.
The U.S. last week issued a waiver allowing purchases by April 11 of Russian crude already loaded on tankers in a bid to calm the global oil market amid the biggest supply disruption in the history of oil markets.
Chinese state giants are taking advantage of this waiver and are now looking to buy Russian crude stranded on tankers, multiple trade sources told Reuters on Tuesday.
The trade units of Sinopec and PetroChina have inquired about buying Russian crude as their key source of supply from the Middle East is drying up with the Strait of Hormuz blocked. Separately, some state oil refiners could also turn to buying crude that the independent Chinese refiners, the so-called teapots, have amassed in the weeks before the war erupted, according to Reuters’ sources.
For some private refiners, reselling the crude to state majors could be even more profitable now that the price of Russian oil has soared than processing it at their refineries, some of the sources added.
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Russia and India will compete fiercely for millions of barrels of Russian crude that was stuck on floating storage in Asia early this year when most buyers outside China steered clear of Russian barrels because of the U.S. sanctions and the pressure on India to slash Russian oil imports.
Now that the U.S. is allowing Russian crude sales, and competition for Russian supply in Asia intensifies, the price of the key Russian grades have flipped to a premium to Brent prices compared to hefty discounts just a month ago.
Yet, Russian crude remains cheaper than supply from Brazil or West Africa, further stoking the appeal of Russian crude to Asian refiners.
In China, the ESPO blend from Russia’s Far East due to arrive in late April was being offered this week at $8 per barrel above July Brent on a delivered basis, compared to a $12-15 premium over Brent for Brazil’s Tupi grade loading in April, according to Reuters data.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana Paraskova
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
