FX.co ★ China opts for Russian crude

As consumer shopping sprees and discount sales evoke tears of joy, China has embarked on a unique purchasing marathon of its own. The focus of its desire is not the latest collection of sneakers nor a limited edition range of smartphones, but something quite different: oil. Indeed, Russian oil became the season's international market sensation. Between January and February of 2024, China subtly acquired over 17.7 million tons of crude, amounting to a staggering $9.9 billion investment. For perspective, this marks a 13.8% increase compared to the same period of 2023. If it were fashionable to wear oil, it would have already become a staple of Beijing's outfit. Reflecting the behavior of a trend-conscious fashionista, Russia supplied China with an impressive 107.024 million tons of oil last year. This shipment carried a relatively modest price tag of $60.64 billion, affirming Moscow's position as a leading trendsetter in China's oil market. As the world anticipated the unveiling of new spring-summer collections, market analysts suggested that China might be poised to break its record for importing Russia's premium Sokol oil. This surge in interest is attributed to India's cautious cutback on oil imports, fearing potential US sanctions, while China seems keen to capitalize on the chance to bolster its reserves. Expert calculations suggest that China could import up to 1.7 million barrels of Russian oil daily, with 379,000 of those barrels being the sought-after Sokol crude.