China increases oil imports despite weak demand: record Russian discounts and sanctions pressure reshape the market
8 December 2025 17:40
China’s crude oil imports grew by almost 5% year-on-year in November, despite a decline in domestic demand. Reuters reports this with reference to the data of the General Administration of Customs of the People’s Republic of China, "Komersant Ukrainian".
Imports of 12.38 million barrels per day were the highest since August last year, a level that usually accompanies periods of economic recovery rather than seasonal decline.
Why is China increasing purchases?
The growth in imports is not due to increased consumption in the country, but to a sharp decline in the price of crude oil amid Western sanctions against Iran and Russia. Restrictions on Russian and Iranian fuel have led to an oversupply, which has created favorable conditions for Chinese refiners to purchase.
As a result, refining margins have increased, and a number of refineries have already applied for additional import quotas for the first batch of 2026.
Record discounts on Russian oil
Russian ESPO crude oil supplied from the Far East is sold to China at a discount of $5-6 per barrel compared to Brent. This is the largest discount in the history of observations, according to Reuters. For comparison, at the end of October it was only $0.5-1 per barrel.
However, despite the significant reduction in price, some of the December cargoes of the Russian ESPO have not yet found buyers, which is atypical for this market segment, where most volumes are usually distributed in advance.
What’s behind the record discount
Reuters sources explain that state-owned Chinese refineries have reduced purchases due to the risks of secondary sanctions, while private refiners have become more cautious about the origin of raw materials. At the same time, this increased pressure on Russian exporters, forcing them to offer lower prices.
Other Russian grades also saw a rise in discounts. Urals was trading at a 23% discount to Brent in November, up from 17% in October.
The situation on the global market
The behavior of China, the world’s key importer, forms a broader context: declining demand in the country is combined with the supply of cheaper Russian and Iranian oil, which puts pressure on world prices and creates additional risks for markets sensitive to price fluctuations.
