A “buyers’ strike” is intensifying in China, fueled by a combination of new sanctions and diplomatic uncertainty. A high-stakes summit between Donald Trump and Xi Jinping concluded with a conspicuous silence on Russian oil, leaving Chinese refiners to navigate the “muddle” alone.
This lack of clarity is a major problem for the market. Western policy is explicitly aimed at cutting off Russia’s war funding, and China is the world’s top crude importer.
The reaction has been swift. State-owned behemoths Sinopec and PetroChina are actively canceling Russian cargoes. This retreat is seen as a direct response to new US sanctions on Russian producers Rosneft and Lukoil.
The fear is palpable in the private sector as well. “Teapot” refiners are shunning Russian crude, terrified by the recent UK/EU blacklisting of Yulong Petrochemical, which set a dangerous precedent.
The strike is working as intended by the West. Moscow has been hit hard, with ESPO crude prices plunging and an estimated 400,000 barrels a day of trade flow affected.
Silence on Oil: Summit Uncertainty Fuels Chinese “Buyers’ Strike”
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