China is lowering purchase prices for sanctioned oil from Russia and Iran — Reuters
Chinese refiners have begun purchasing sanctioned oil from Russia and Iran at lower prices amid weakening demand from independent refineries.
According to traders, Iranian Light crude oil for delivery to Shandong Province this month is selling at a discount of $0.50 to $1 per barrel relative to the ICE Brent benchmark. In April and May, however, this grade was sold at a premium of $1 to $2 per barrel.
Russian ESPO crude, which is in demand among independent Chinese refineries, has also become cheaper. The premium for June deliveries fell to $3–4 per barrel over ICE Brent, compared to $4–5 a month earlier.
According to Kpler data, Iranian oil imports to China in May fell to 1.1 million barrels per day, the lowest level since January 2025.
Imports of Russian oil also decreased—to 1.04 million barrels per day. This is the lowest level since August of last year.
Analysts note that the decline in demand and prices could negatively impact oil revenues for Russia and Iran.
Source: Reuters.
As a reminder, amid the escalating situation in the Middle East, the discount on Russian Urals crude began to rise for the first time in recent months. However, experts say that high oil prices will not save the Russian economy from a slowdown.
The price of Russian Urals crude at Indian ports jumped to a record $121.65 per barrel.
