China's Oil Market Sees Russia and Iran Slash Prices in Intensifying Rivalry.

Oil Market Competition Heats Up

According to UATV: In the face of declining imports from India, Russian and Iranian oil producers have ramped up their price competition to win over Chinese buyers. This rivalry is a key feature of a global oil market where major consumers are leveraging their purchasing power. Russian oil shipments to China surged by 20% in February, while Iran's crude exports to the country fell by 12%.

According to data published by Bloomberg on February 25, 2026, Russian oil supplies to India could drop by 40%, to 600,000 barrels per day. Concurrently, the discount on Russia's Urals crude grade has reached approximately $12 per barrel against the ICE Brent benchmark. This significant price cut makes Russian oil increasingly attractive to Chinese importers seeking more favorable purchasing terms.

Fluctuating Supply Volumes

During the first 18 days of February, Russian oil deliveries to Chinese ports averaged 2.09 million barrels per day. In contrast, Iran's crude exports to China this year stand at about 1.2 million barrels per day, marking a 12% decrease from the previous year. The volume of Iranian oil held in floating storage at sea has risen to 48 million barrels, while Russian oil in similar offshore storage has reached 9.5 million barrels.

This market scenario highlights the escalating competition between Russia and Iran for Chinese customers, a dynamic with the potential to significantly impact global oil prices in the near future. The reduction in Indian imports and the surge in Russian exports are likely to further influence price trends, as China remains one of the world's foremost oil consumers. Such shifts could lead to changes in supplier strategies and have broader repercussions for global energy markets.