Sinopec Cuts Middle East Crude Imports on Iran Conflict, Shifts to Russian ESPO Blend for 2026

China Petroleum & Chemical Corporation (Sinopec), the world's largest oil refiner, has increased purchases of Russian Far East crude to compensate for supply shortfalls caused by Middle East conflicts. Trade sources and vessel tracking data confirm this trend. Since March, China has restricted refined fuel exports to safeguard domestic supply amid war-induced trade disruptions, but Sinopec has maintained relatively stable processing volumes by increasing Russian crude purchases, while capitalizing on higher export margins to sell surplus products overseas. Russian crude prices are lower than comparable grades from Brazil and West Africa.

Sources said Sinopec has purchased 30 to 40 cargoes of Russian ESPO (Eastern Siberia-Pacific Ocean pipeline) blend crude for delivery from July to September, equivalent to 241,000 to 320,000 barrels per day, or about 5% to 6% of Sinopec's daily refining capacity of 5.2 million barrels. Vessel tracking firm Vortexa Analytics data shows Sinopec received about 7.4 million barrels of ESPO crude in July, with most delivered to Rizhao port in Shandong province, a refining hub. Additionally, Sinopec has secured at least 10 cargoes for each of August and September. ESPO crude is typically transported by tankers capable of loading 740,000 barrels.

Before the Middle East conflict, nearly half of Sinopec's crude came from the region, and it was one of Saudi Arabia's largest customers. According to trade sources, Sinopec purchased no Saudi crude in June and July, and only 2 million barrels in August, far below the 20 million barrels imported monthly in March and April, and less than one-fifth of the average monthly imports of 11 million barrels in the year before the conflict.