China's increased purchases of April-loading Urals oil and imports of the grade loading from Russia's Baltic and Black Sea ports this month may hit an 11-months high supporting its prices, traders said and Refinitiv Eikon data showed. China has purchased some 265,000 barrels per day (bpd) of Urals oil loading from Primorsk, Ust-Luga and Novorossiisk in April so far, up from 195,000 bpd of the grade loading in March, the data showed.
Overall China's monthly Urals purchases are expected to exceed this number as more fixtures may be visible after the month's end. The data also excludes Urals shipments to China from ship-to-ship (STS) facilities. April-loading Urals cargoes should offload in Chinese ports in May and early June.
Seaborne imports of Urals come on top of pipeline and seaborne Russian ESPO Blend deliveries to China and sea supplies of Arctic grades. China's March oil imports from Russia hit a record amid active buying of both state oil companies and "teapot," or small independent, refineries. Chinese refiners are increasing Russian oil imports amid growing confidence in Beijing's trade with Moscow and as new private players are joining Russian oil market attracted by low prices. India remains a leading destination for Urals oil cargoes in April accounting for more than 70% of loadings, according to the data. Some traders think, however, that India reached the peak of its buying last month and purchases may drop slightly offering Chinese buyers an opportunity to snap up more Russia barrels. At the same time prices for Urals oil cargoes at delivery ports in China and India improved in April amid the states' competition over the Russian oil and jumped above the "price cap" imposed by Western countries. Russia's Rosneft signed a term deal with Indian Oil Corp cementing the relationship between two large oil companies. (Reporting by Reuters; editing by Jonathan Oatis)
