China’s oil market is in chaos, caught between diplomatic silence and sanctions fear. A Trump-Xi summit ended with no clarity on Russian oil, leaving refiners in a “muddle.”
At the same time, Western sanctions are biting hard. US actions against Rosneft and Lukoil, and the UK/EU blacklisting of Yulong Petrochemical, have terrified the market.
The result is a “buyers’ strike.” State-owned firms (Sinopec, PetroChina) and private “teapots” are all in retreat, canceling or shunning Russian cargoes.
This has been devastating for Moscow. ESPO crude prices have plunged, and an estimated 400,000 barrels a day of trade are affected.
As China, the world’s top importer, looks for new supplies, the US could benefit from a trade truce, but the market’s “muddle” remains a major hurdle.