Oil: China lets Russian oil be bought under the table, but the grain comes from Kazakhstan
It is not only India that is tempted by the lure of Russian oil at discounted prices, and to buy it. China is also doing the same, but in a more covert way and without exposing itself directly. Let's start by saying that Russian “Ural” oil is sold at a discount of over $ 20 per barrel compared to the Brent equivalent of comparison.
India buys it in an official way, indeed it is preparing an ad hoc Ruble-Rupee payment instrument. On the contrary, the encircled public refineries buy a bit of everything that is on the tanker and that is at a good price, but they do it absolutely under track, load by load, without raising any attention. Obviously, however, given the limited capacity of the plants, someone will notice, sooner or later: the traditional suppliers of the Chinese refineries, who will find themselves with less oil to sell.
Not that there is a problem in placing it, even for an event that involved Kazakhstan's main commercial outlet for oil: the Black Sea terminal of the oil pipeline managed by CPC, a Russian / Kazakh consortium that manages the transport of oil from Central Asian country on the Black Sea, has been heavily damaged and will therefore be unusable for about a month and a half. so it goes, disappears, more or less 1% of the world's oil production that is not there overnight. This is to understand the level of fragility of world oil supplies. Fortunately, China, with Covid and Lockdowns, is containing its internal demand, otherwise it would be a nice, big problem.
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The article Oil: China lets Russian oil buy under the table, but the grain comes from Kazakhstan comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/petrolio-la-cina-lascia-comprare-sottobanco-il-petrolio-russo-ma-le-grane-vengono-dal-kazakistan/ on Thu, 24 Mar 2022 17:44:11 +0000.