China is capitalizing on a major shift in Russian oil flows! ๐จ๐ณ๐ท๐บ
$KAIA |
$AXS |
$DASH Russia's flagship Uralsbcrude is now selling to Chinese refiners at record discounts with prices dropping to unprecedented lows, around $10-12 below Brent in recent deals (some cargoes even wider in late 2025). This comes after India sharply reduced its purchases of Urals, hitting a three-year low in December 2025 due to tighter U.S. sanctions on Russian oil firms cooling demand.
As a result:
- Deliveries to India plummeted...
- Opening the floodgates for China!
- Urals imports to China surged to a record ~400,000-405,000 barrels per day in early 2025 data (highest since mid-2023), per Kpler and Reuters reports.
While China has traditionally favoured ESPO blend from Russia's Far East, it's now snapping up more discounted Urals from Western ports a unique opportunity despite the longer shipping distances.
This dynamic is putting serious pressure on Russian export revenues while giving Chinese buyers a bargain on crude amid global energy shifts.
What do you think will this discount window last, or will other buyers step back in? Oil market watchers, drop your takes below! ๐ข๏ธ๐
#OilMarkets #RussianOil #ChinaRussiaRelations