A “Buyers’ Strike” in Beijing: 400,000 Barrels of Russian Oil Rejected

A massive “buyers’ strike” in Beijing has led to the rejection of some 400,000 barrels of Russian oil per day. Chinese refiners, from state-owned giants to private “teapots,” are shunning Russian crude due to escalating fears of Western sanctions.
The strike, estimated by Rystad Energy AS to affect up to 45% of China’s Russian imports, has caused prices for ESPO crude to plummet. The fear was triggered by new US sanctions on Russian producers Rosneft and Lukoil, and amplified by the UK/EU blacklisting of a Chinese refiner, Yulong Petrochemical.
This has left state firms like Sinopec and PetroChina on the sidelines, canceling cargoes. Private teapots are also holding back, unwilling to risk the same fate as Yulong.
This is a major blow to Russia, which had relied on China as its biggest customer, offering steep discounts to fund its war effort after the invasion of Ukraine. The US and its allies are now successfully choking off this revenue stream.
The retreat from Russian oil will likely benefit other suppliers. The US, following a recent trade truce with Beijing, is a potential candidate. However, the situation is complex, as many teapots are also running low on import quotas, limiting their ability to purchase crude from any source.