Sanction Risks: Chinese Refineries Increase Oil Purchases.

Chinese oil companies and private refiners are actively purchasing oil from various regions due to expected supply disruptions resulting from increased sanctions against Russia and Iran.

Companies such as Cnooc, Shandong Yulong Petrochemical Co, and Jiangsu Eastern Shenghong Co are seeking opportunities to make immediate oil purchases.

February oil supplies are particularly popular, including various grades from the Middle East, Africa, and America.

The heightened interest in purchases is due to private refiners' fears of production stoppages or fuel shortages due to a lack of Russian and Iranian oil.

If small enterprises exit the market, large state-owned refiners may be forced to intervene to avoid fuel shortages in the domestic market, especially for diesel. This is an important goal for Beijing in terms of ensuring energy security.

New U.S. sanctions have already impacted over 180 tankers and several Russian oil companies. These measures have significant effects on the Asian oil market, where buyers, carriers, and port operators are seeking solutions to overcome these ramifications.

Some tankers carrying Russian ESPO oil to China are in a location close to China's territory in search of alternative solutions.

Chinese importers are increasingly interested in spot oil purchases. This interest has been gradually rising over the last two months due to the increase in Iranian oil prices. However, this week, demand surged sharply due to new U.S. sanctions against Russia's 'shadow fleet'.