SINGAPORE: Several suppliers have canceled sales of Middle Eastern and Canadian oil to China’s Yulong Petrochemical after the UK imposed sanctions on the refiner, which is likely to push it to buy more Russian crude, multiple sources familiar with the deals said.
The refiner, China’s newest with a capacity of 400,000 barrels per day and one of the country’s largest single Russian oil customers, is among the entities Britain designated last week to curb Moscow’s oil revenues used to fund the Ukraine war.
Suppliers that are unwinding supply deals include European majors TotalEnergies, BP, trading house Trafigura, Chinese state trader PetroChina International and others, the sources said.
Most of the cancelations apply to spot cargoes that were due to load after November 13, when the sanctions take effect.
PetroChina International and TotalEnergies each exited transactions supplying Access Western Blend, a heavy crude exported from Canada, said two other sources, who have knowledge of those transactions.
