India, Turkey emerges as major buyers of Ural crude from Russian ports, China sees decline
(MENAFN) In June, India and Turkey emerged as the leading buyers of Urals crude oil from Russian ports, while China's acquisitions saw a decline due to weak refining margins and elevated freight costs, as revealed by data from the London Stock Exchange Group. India, which has maintained its status as Russia's top buyer of seaborne crude since 2022, purchased over 65 percent of Urals cargoes last month. This substantial purchase includes other grades of Russian oil in addition to Urals. India's principal ports for receiving Urals crude—Sika, Vadinar, Mundra, and Cochin—cater to major Indian refiners such as Reliance Industries, Nayara Energy, Indian Oil, and BPCL.
Turkey, which had increased its Urals oil purchases to a record high in May, imported slightly less in June but still accounted for about 20 percent of Urals crude exports last month. Despite this minor decrease, Turkey remains a significant buyer in the market.
Conversely, shipments of Urals crude to China dwindled in June, with only two cargoes arriving there, according to data from the London Stock Exchange Group. Traders attributed this drop to weak demand from domestic refiners facing squeezed profit margins. Additionally, the high cost of shipping from western Russian ports to China further impacted the profitability of these supplies. Nonetheless, China continues to be a major buyer of ESPO blend crude from Russia's Far East and has recently ramped up its purchases of July-loading cargoes, indicating a selective yet strategic approach in its crude oil imports.
MENAFN02072024000045015682ID1108397144
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.