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Chinese state-owned oil companies have suspended purchases of Russian oil transported by sea after the United States imposed sanctions on Rosneft and Lukoil, Moscow's two largest oil companies, multiple trade sources said on Thursday.
The move comes at a time when refiners in India, the largest buyer of Russian seaborne oil, are poised to sharply reduce their crude oil imports from Moscow, in line with US sanctions imposed over the Kremlin's invasion of Ukraine.
A sharp drop in oil demand from Russia's two biggest customers will put pressure on Moscow's oil revenues and force the world's major importers to seek alternative supplies and push up global prices.
Chinese national oil companies PetroChina (601857.SS), Sinopec, CNOOC and Zhenhua Oil will refrain from trading in Russian seaborne oil at least in the short term due to concerns about sanctions, the sources said. / Reuters
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