Daily Management Review

Bloomberg: China buys rare grades of Russian oil from the Arctic


Rare Russian oil grades from the Arctic are imported by China. In controversy are the Arco, Novy Port, and Varandey crudes, reports Bloomberg referring to the analytical firm Vortexa. Analysts point out that these grades were meant for exports to Europe prior to the imposition of the price cap ($60 per barrel) on Russian oil.

Bureau of Safety and Environmental Enforcement BSEE
Bureau of Safety and Environmental Enforcement BSEE
China purchased three batches of Arctic crude for delivery in January or February, according to Bloomberg. Beijing, however, reportedly got its first cargo as early as November, according to Vortexa. Varandey and Novy Port grades were among China's most recent purchases, according to analysis firm Kpler. Analysts think that Middle Eastern oil grades may be replaced by these sources.

According to Reuters, Moscow has diverted its shipments of Arctic crudes to China and India following the implementation of a price ceiling on Russian oil. The organization also pointed out that the resource's cost had decreased. Bloomberg reports that in December, Russia dispatched six ships filled with different Arco, Novy Port, and Varandey grades to India.

The European Union, the G7 nations, and Australia agreed on a price cap for Russian oil. It became effective on December 5. Vladimir Putin, President of Russia, responded by forbidding the delivery of oil and oil-related items if the contracts specify a price cap.

source: bloomberg.com