Moscow has been hit hard by a Chinese “buyers’ strike,” which has cut an estimated 400,000 barrels per day of oil flow. This move is a clear success for Western policy aimed at cutting off Russia’s war funding.
The strike is being carried out by China’s most powerful importers. State-owned Sinopec and PetroChina are canceling cargoes, reacting to new US sanctions on Rosneft and Lukoil.
Private “teapot” refiners are also shunning Russian crude, terrified by the UK/EU blacklisting of Yulong Petrochemical.
The plunging price of ESPO crude is a direct consequence of this unified retreat by Chinese buyers.
This is all happening in a “muddle” of diplomatic silence. A recent Trump-Xi summit failed to provide any public clarity on the oil issue, leaving refiners to guess the political risks.