A “muddle” over Russian oil is gripping Chinese refiners after a high-stakes summit between Donald Trump and Xi Jinping ended with no clarity on the issue. The leaders’ silence has left the world’s top importer in a state of maximum uncertainty.
This ambiguity is problematic as China looks for new supplies. While a new trade truce could benefit the US, the lack of a clear signal from the top is a major issue for state-owned and private companies alike.
The retreat is already visible. State firms Sinopec and PetroChina are canceling Russian cargoes, reacting to new US sanctions on producers Rosneft and Lukoil.
Simultaneously, private “teapot” refiners are shunning Russian crude. This fear is a direct result of the UK/EU blacklisting of Yulong Petrochemical, which demonstrated the severe risks involved.
The impact has been a sharp plunge in ESPO crude prices, hitting Moscow’s finances and affecting an estimated 400,000 barrels a day as the “buyers’ strike” takes hold.
Trump-Xi Talks End, But “Muddle” Over Russian Oil Remains
