ALEXEI DRUZHININ/Getty Images
- China's seaborne imports of Russian crude are on course to hit a record high in March, according to Reuters.
- Analytics firms Vortexa and Kpler estimate nearly 43 million barrels of Russian crude will reach China this month.
- The hefty buying comes as China snaps up Russian oil at huge discounts, and the nation relaxes its COVID-19 policies.
China's imports of seaborne Russian oil are on track to hit a record high in March as Beijing snaps up the commodity at huge discounts.
According to tanker tracking companies Vortexa and Kpler, an estimated 43 million barrels of Russian crude are set to be delivered to China this month, per Reuters. That tops the previous high set in June 2020, when China snapped up 42.48 million barrels, according to the news outlet.
China has been a top buyer of Russian oil since President Vladimir Putin invaded Ukraine last year. In February, Russia sold the most crude and fuel oil to China since launching its war against Ukraine, delivering 1.66 million barrels a day.
With its ties with the West under strain, Moscow has emphasised a "no limits" strategic partnership with China. Russia is aiming to hit $200 billion of trade with China this year as it seeks to take the relationship to a new level.
The increased buying from Chinese refiners comes as the world's second-largest economy emerges from zero-COVID policies, stoking demand for energy. It's also been snapping up Russian crude in the absence of Western buyers, which has subsequently led to lower prices for Asia.
Analysts cited by Reuters said Russia's flagship crude Urals was trading at a $14-a-barrel discount to the global benchmark ICE Brent Crude. However, robust demand from China is likely to elevate prices and reduce those steep discounts, the news outlet cited a China-based oil trader as saying.
The price of Russian oil could also rise as Moscow threatens to retaliate against price caps imposed by the West, by potentially slashing 25% of its crude exports from the spot market.