China refiners snap up September Russian crude, eye Iranian oil as Mideast supply risks grow

Some Chinese refiners have ramped up purchases of sanctioned Russian crude despite shrinking discounts, as an escalation in the Iran war disrupts exports from the Middle East, sources familiar with the situation said.

Chinese refiners recently snapped up crude from their biggest supplier, Russia, and resumed talks to buy Iranian oil, traders said.

Two major Chinese refiners bought most of the Russian ESPO Blend crude loading from the Pacific port of Kozmino in September, three trade sources said.

Two of them said the cargoes were sold at a discount of $1 to $3 per barrel to ICE Brent, compared with a discount of around $4 per barrel for August-loading ESPO. Robust demand from India, another major Russian oil buyer, has supported prices.