China bought record Russian crude in February after India cut purchases under a U.S. trade deal. According to traders and ship-tracking data and tracking estimates, shipments averaged about 2.07 million barrels per day in February, up from 1.7 million in January, with Russia offering discounts of $9–$11 per barrel.
Refiners in China now take the largest share of oil from sanctioned suppliers, including Russia, Iran, and Venezuela. Private refiners, known as teapots (Ed. note: “teapots” refers to independent private refiners), bought record amounts of these cargos.
“For the quality you get from processing Russian oil versus Iranian, Russian supplies have become relatively more competitive,” said a senior Chinese trader. “For teapots, Russian oil looks more reliable now as people are worried about loadings of Iranian oil in case of a military confrontation,” Li said.
The shift has made BRICS countries central to trade in discounted crude supplies. Discounted rates tied to sanctions have aided buyers in China, Russia, and India, among others.
