Moscow China is taking advantage of the slump in demand from Europe and is stocking up with a record amount of Russian oil. According to traders, 1.6 million tons of Russian oil for shipping at sea were bought over the next four weeks.
In addition to the lack of demand from European countries as a result of the coronavirus epidemic, the Chinese also used the lowest prices for the oil grade, traders said on Wednesday.
For Russian oil companies, interest comes from China. Because of the foreseeable recession in the western industrialized countries, the price war with rival Saudi Arabia, which is flooding trade in the raw material in the battle for market share, is also adding to them.
The deliveries could also suggest that China is using the slump in oil prices to replenish its strategic reserves.
Wood Mackenzie analysts estimate that China’s strategic and commercial oil reserves could hit about 1.15 billion barrels this year. This corresponds to the oil requirement of 83 days. In 2019 the reserves were still 900 million, in 2014 even only 200 million barrels.
More: Oil price recovery continues – US economic stimulus package supports. Read more here.