Seaborne supplies of Urals crude bound for China in January rose to some 230,000 barrels per day (bpd), the highest since June 2022, as demand for the grade from the world’s largest oil importer showed early signs of a rebound, traders said and Refinitiv Eikon data showed.

“China wakes up, and new buyers (of Urals crude) emerge every day. India is already taking (Russian oil) to the maximum, and if there is an increase in demand, it will be from China,” a source with a major trading company said.

Direct shipments of Urals from Russia’s Baltic ports to China by 100,000-tonne vessels reached 500,000 tonnes in January, while ship-to-ship (STS) transfer points near the ports of Ceuta in Spain and Kalamata in Greece have reloaded some 420,000 and 80,000 tonnes on to vessels bound for China.

Direct Urals supplies from Russia’s ports to China in the first 10 days of February rose to some 360,000 bpd, according to provisional data provided by market sources and Reuters calculations.

Urals crude has been sold at deeper discounts following a European ban on Russian oil imports since Dec. 5, 2022.
Source: Reuters