Breaking: Chinese Oil Giants Halt Russian Purchases Amid Sanctions – What This Means for Global Markets

SINGAPORE, Oct 23 (Reuters) – Chinese state oil companies have paused purchases of Russian seaborne oil. This follows new U.S. sanctions on Rosneft and Lukoil, Russia’s largest oil companies.

India, the biggest buyer of Russian oil, is also planning to cut its imports sharply. This is part of its effort to comply with the new U.S. sanctions linked to the ongoing crisis in Ukraine.

With these two nations reducing their demand, Russia’s oil revenues may take a hit. Both countries will likely look for other oil sources, which could raise global oil prices.

Chinese companies like PetroChina, Sinopec, and CNOOC are hesitant to buy Russian oil due to these sanctions. An analysis from Vortexa Analytics noted that state firms in China were importing under 250,000 barrels per day (bpd) of Russian oil for most of 2025. In contrast, consultancy Energy Aspects estimated the figure to be around 500,000 bpd.

Additionally, many independent refiners in China are considering holding off on purchases as they track the implications of the sanctions.

Before the sanctions, offers for Russian crude saw a decrease in value, sliding from a premium of $1.70 to $1 per barrel relative to Brent Crude.

China sources about 900,000 bpd of Russian oil via pipelines, mainly delivered to PetroChina, which is expected to remain less affected by these sanctions.

Expert opinions highlight that both India and China could shift their focus to non-Russian oils from regions like the Middle East and Africa. This trend is likely to increase oil prices globally as demand grows instead for non-sanctioned oil supplies.

Social media reactions show strong sentiments on this issue, with users debating whether these sanctions will effectively isolate Russia or simply change the dynamics of global oil trade. The implications reach beyond economics; they touch on geopolitical strategies as countries navigate these complex international waters.

Overall, the situation illustrates how interconnected global oil markets are, where one nation’s policies can prompt significant shifts worldwide. As India and China re-evaluate their energy sources, the global oil landscape may experience notable changes in the coming months. For more insights on global oil dynamics, check the latest reports from Reuters.

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