GreenergyDaily

Aug. 8, 2025

Prompt supplies of Russia’s flagship Urals crude are being offered to Chinese buyers, a sign of shifts in the global oil market as President Donald Trump takes aim at India over its purchases from Moscow, according to Bloomberg.

Urals shipments for October arrival are being touted to buyers at cheaper prices, garnering interest from state and private refiners who are currently negotiating for cargoes, according to traders with direct knowledge of the talks, who asked not to be identified as they aren’t authorized to speak publicly.

While China is the no. 1 buyer of Russian oil delivered by sea as well as land routes, local refiners predominantly take ESPO, a grade that’s produced and loaded from the eastern part of the country. Chinese imports of Urals, which ships from ports in the west, are not typically part of processors’ regular appetite given the geographical distance and high freight costs.

Earlier this week, Trump doubled levies on all Indian imports as a penalty for the nation taking Russian crude, part of efforts to get Moscow to agree to a truce in the Ukraine war. The US move prompted state-owned refiners in the South Asian nation to pull back from purchases and look elsewhere, freeing up some volumes that could end up in China instead.

Still, while China — with its vast refining system as well as strategic petroleum reserves (SPR) appetite — is seen as a viable alternative market for Urals, it’s unclear if Beijing would pick up the slack amid trade tensions with Washington. Treasury Secretary Scott Bessent said the US may also impose tariffs on China, when asked about targeting countries that buy Moscow’s energy.

Against that backdrop, Urals cargoes are being discussed with potential Chinese buyers at premiums as low as $1.50 a barrel to London’s Brent, down from a differential near $2.50 late last week, the traders said. Companies offering these shipments include Russia-affiliated traders such as Litasco.