Previously, small refiners from the People’s Republic of China preferred oil from Russia and Iran.
A private Chinese oil refiner has bought a batch of West African oil in what experts say is an unusual development. Bloomberg writes about it.
As reported, the Chinese Landbridge Petrochemical Co. purchased 2 million barrels, including Mostarda, for delivery in January. Previously, such buyers preferred Russian oil of the ESPO brand, as well as Iranian raw materials. Shorter delivery routes and a low price are among the reasons for this.
China’s purchase of African oil comes amid uncertainty about the Trump administration’s policy to implement US sanctions against Iranian crude. Experts suggest that under the presidency of Donald Trump, Tehran may face stricter restrictions.
As for the Russian Federation, the situation is not critical for it yet. However, the further refusal of the People’s Republic of China from Russian oil could be a real disaster for Moscow, whose budget depends largely on oil revenues.
It will be recalled that Trump’s victory in the recent elections led to the collapse of oil prices.
The ex-president’s intentions to actively develop America’s oil industry were named among the reasons for this. In addition, Trump promised to put pressure on the Chinese economy, which could lead to a weakening of oil demand.
It was also reported that the oil and gas industry of the Russian Federation risks being in danger after Trump’s inauguration, because the new administration may force Europe to more actively look for a replacement for Russian fossil fuels.
