A “buyers’ strike” is underway in China as the world’s top oil importer shuns Russian crude. State-owned giants Sinopec and PetroChina are actively canceling Russian cargoes, signaling a major retreat from the market.
This move is a direct response to escalating Western pressure. New US sanctions have been imposed on major Russian producers Rosneft and Lukoil, making transactions increasingly risky.
The fear is even more pronounced among private “teapot” refiners. These smaller operators are terrified after the UK and EU blacklisted Yulong Petrochemical, demonstrating the real-world consequences of dealing with Russian entities.
This “buyers’ strike” is inflicting significant pain on Moscow, a primary goal of Western policy aimed at cutting off war funding. ESPO crude prices have plunged as a result of the sudden drop in demand.
The situation is complicated by a high-stakes Trump-Xi summit that remained silent on the oil issue, leaving refiners in a “muddle.” Furthermore, many teapots are low on annual crude import quotas, limiting their ability to buy from any source.