Russia’s ESPO Crude Plunges as Chinese Buyers Strike

Russia’s ESPO crude prices have plunged as a massive “buyers’ strike” takes hold in China, the world’s top oil importer. This strike is hitting Moscow hard, affecting an estimated 400,000 barrels a day and directly impacting its war funding.
The strike is led by China’s largest refiners. State-owned Sinopec and PetroChina are canceling Russian cargoes in response to new US sanctions on producers Rosneft and Lukoil.
Private “teapot” refiners are also in retreat. They are reportedly terrified by the UK/EU blacklisting of Yulong Petrochemical, fearing they could be next if they deal with Russian entities.
This market turmoil comes at a time of diplomatic ambiguity. A high-stakes summit between Donald Trump and Xi Jinping ended with a “muddle,” as public readouts were silent on the critical issue of Russian oil.
The situation is also complicated by domestic logistics in China. Many teapots are running low on annual crude import quotas, further limiting their ability to purchase Russian supplies.