The photo is sourced from maritimesa.org
The largest exporter of feedstock for independent Chinese refineries was Russia, which accounted for 84.6% of supplies (187.2 million barrels). Placing second was Oman, which provided 7.2% of supplies (15.9 million barrels), and the United Arab Emirates (UAE) came in third with 5.7% (12.7 million barrels). Rounding out the top five were Brazil and Angola, which accounted for 2% (4.4 million barrels) and 0.5% (1 million barrels) of supplies, respectively, in the first half of 2023.
The most popular oil grade was the Russian grade ESPO, which has a lower sulfur content (0.55%) and lower density (34.7 API) than Urals (1.7%; 31.7 API; the lower the API gravity, the higher the density). Supplies of ESPO to independent Chinese refineries in the first half of 2023 totaled 106.8 million barrels against 31.2 million barrels of Urals oil. One-fourth of oil supplies from Russia was provided by producers of all other oil grades, including the low-sulfur grades Sokol (0.3%; 35.5 API) and Novy Port (0.1%; 35 API). Meanwhile, supplies from Middle Eastern producers were represented by oil grades such as Oman (1.29%; 33.2 API), Murban (0.74%; 40.5 API) and Upper Zakkum (1.84%; 33.2 9 API). Finally, the only grades from Brazil and Angola were Tupi (0.32%; 31 API) and Mostarda (0.93%; 28.3 API), respectively.
Independent Chinese refineries also import fuel oil: according to S&P Global Platts, fuel oil imports made up only 3.3 million barrels in the first half of 2022 but skyrocketed to 51 million barrels in the first half of 2023. This increase is caused by strict quotas on oil imports in China, which compel non-state-owned refineries to use alternative types of feedstock. Although imports of fuel oil are also subject to quotas and supplies are surging, the first six months of this year saw independent oil refiners fail to take up even half of the quotas for the current year (118.7 million barrels).
